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Notes to Accounts of India Glycols Ltd.

Mar 31, 2018

1.1. Company Overview

India Glycols Limited (âIGLâ or âthe companyâ) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are publicly traded on the National Stock Exchange (âNSEâ) and the Bombay Stock Exchange (âBSEâ) in India. The registered office of IGL is situated at A-1, Industrial Area, Bazpur Road, Kashipur - 244713, Distt. Udham Singh Nagar, Uttarakhand, India.

The Company manufactures Industrial Chemicals such as green technology based bulk, specialty and performance chemicals and natural gums and industrial gases; Ethyl Alcohol (Potable) and nutraceuticals.

These financial statements were authorized for issue in accordance with a resolution of the directors on dated 1^st May, 2018.

1.2. Basis of Preparation of financial statements

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the âInd ASâ) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended.

1.3. Critical accounting estimates, assumptions and judgements

I n the process of applying the Companyâs accounting policies, management has made the following estimates, assumptions and judgements, which have significant effect on the amounts recognised in the financial statement.

Uncertainty about these assumptions and estimates could result in outcome that require a material adjustment to assets or liabilities affected in future periods.

a) Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities based on probability that taxable profit will be available against which the deductible temporary differences can be utilized. The Company reviews at each balance sheet date the carrying amount of deferred tax assets and liabilities. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial statements.

b) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

c) Allowance for uncollected accounts receivable and advances

Trade receivables and advances are stated at their transaction value as reduced by appropriate allowances for estimated irrecoverable amounts. Trade receivables and advances are written off on case to case basis when management deems them not to be collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.

d) Insurance claims

Insurance claims are recognised when the Company have reasonable certainty of recovery. Subsequently any change in recoverability is appropriately adjusted for and give effect in the statement of profit and loss.

e) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

f) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

1.4. Recent Accounting Development

(a) Standards issued but not yet effective:

IND AS 115: Revenue from Contracts with Customers

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying Ind AS 115, âRevenue from Contracts with Customersâ. The Standard is applicable to the Company with effect from 1^st April, 2018.

Revenue from Contracts with Customers Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS 11 Construction Contracts when it becomes effective. The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:

- Step 1: Identify the contract(s) with a customer

- Step 2: Identify the performance obligation in contract

- Step 3: Determine the transaction price

- Step 4: Allocate the transaction price to the performance obligations in the contract

- Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Based upon the operations of the company, this IND AS is not applicable to it and is not likely to impact its financial performance.

* Pledged with bank/Government Authorities as margin money/security against guarantees, packing credit facility and other borrowings maturing after 12 months

# Includes Rs.1,264.26 Lakhs (Previous Year Rs.1,175.61 Lakhs) (net of deferred expenditure) security deposit to director, private companies in which director/directors of company is director and are also related parties.

a) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature of reserves

Reserve from Contingencies are created in earlier years to meet any contingencies in future and in the nature of free reserve.

General reserve amount transferred/ apportioned represents is in accordance with Indian Corporate law (The Companies Act, 1956) wherein a portion of profit is apportioned to general reserve, before a company can declare dividend.

Other comprehensive Income Reserve represent the balance in equity for items to be accounted in Other Comprehensive Income. OCI is classified into i) Items that will not be reclassified to profit & loss ii) Items that will be reclassified to profit & loss.

Notes:

1 The Term Loans inter-se, are secured / to be secured by mortgage of all immovable properties of the Company both present and future and hypothecation of all movable properties of the Company (save and except book debts) including movable machinery, machinery spares, tools and accessories, both present and future subject to prior charges created and / or to be created in favour of the bankers of the Company on stocks, book debts and other specified movable properties for working capital requirements / Buyers Credit.

2 Rupee Term Loans includes loans from Banks of '' Nil (Previous Year Rs.12.19 Lakhs) and loans from others of Rs.54.28 Lakhs (Previous Year Rs.87.79 Lakhs) secured by hypothecation of Motor Vehicles purchased there under which is repayable on different dates. Further, Rupee Term Loans from others includes Rs.670.19 Lakhs Previous Year Rs.926.25 Lakhs) secured against bank guarantee. (read with para 10 & 11)

3 Term Loan from bank of Rs.605.00 Lakhs, is repayable 5 in equal monthly installment of Rs.100.00 Lakhs commencing from April 2018 and 1 installment of Rs.105.00 Lakhs in Sept 2018.

4 Term Loan from bank of Rs.6,750.00 Lakhs, is repayable in 20 equal quarterly installments of Rs.337.50 Lakhs commencing from June 2018.

5 Term Loan from bank of Rs.3,000.00 Lakhs, is repayable in 20 quarterly installments, 8 installment of Rs.112.50 Lakhs , 4 installment of Rs.150.00 Lakhs and 8 installment of Rs.187.50 Lakhs commencing from June 2018.

Term Loan from bank of Rs.4,975.00 Lakhs, is repayable in 22 quarterly installments, 2 installment of Rs.25.00 Lakhs , 3 installment of Rs.100.00 Lakhs, 1 installment of Rs.125.00 Lakhs, 4 installment of Rs.187.00 Lakhs, 4 installment of Rs.250.00 Lakhs, 4 installment of Rs.313.00 Lakhs and 4 installment of Rs.375.00 Lakhs commencing from April 2018.

6 Term Loan from bank of Rs.1,350.00 Lakhs, is repayable in 9 equal quarterly installments of Rs.150.00 Lakhs commencing from October 2019.

7 Term Loan from bank of Rs.212.58 Lakhs (Previous Year Rs.1,062.90 Lakhs) , is repayable in 1 installment of Rs.212.58 Lakhs in April 2018.

8 Term Loan from bank of Rs.1,250.00 Lakhs (Previous Year Rs.3,125.00 Lakhs) , is repayable in 2 equal quarterly installments of Rs.625.00 Lakhs each commencing from April 2018.

9 Term Loan from bank of Rs.937.50 Lakhs (Previous Year Rs.2,187.50 Lakhs) , is repayable in 3 equal quarterly installments of Rs.312.50 Lakhs each commencing from May 2018.

10 Term Loan from DBT Bio-pharma Rs.47.89 Lakhs net off Rs.2.11 Lakhs for deferred Govt. Grant (Previous Year Rs.136.63 Lakhs) , is repayable in August 2018.

11 Term Loan from DBT Bio-pharma Rs.532.29 Lakhs net off Rs.87.8 Lakhs for deferred Govt. Grant (Previous Year Rs.649.48 Lakhs), is repayable in 8 equal half yearly installments commencing from July 2018.

12 Term Loan from Body Corporate of Rs.3,000.00 Lakhs (Previous Year '' Nil) is repayble only post confirmation from consortium banks.

13 Term Loan from body corporate of Rs.1,000.00 Lakhs (Previous Year Rs.1,000.00 Lakhs) is repayble in April 2018.

14 Term Loan from body corporate of Rs.200.00 Lakhs (Previous Year '' Nil) is repayble in August 2018.

15 Term Loan from body corporate of Rs.1,000.00 Lakhs (Previous Year '' Nil) is repayble in September 2018.

16 Term Loan from body corporate of Rs.500.00 Lakhs (Previous Year '' Nil) is repayble in December 2018.

17 Term Loan from bank of '' Nil (Previous Year Rs.511.00 Lakhs)

18 Term Loan from bank of '' Nil (Previous Year Rs.3,336.00 Lakhs)

19 Term Loan from bank of '' Nil (Previous Year Rs.364.00 Lakhs)

20 Term Loan from bank of '' Nil (Previous Year Rs.3,015.76 Lakhs)

* Long term export advance received from customers with supply schedule over period of 8-10 years. Export advance has been secured by Guarantee given by State Bank of India (SBI) to the customers, while other export performance bank guarantee (EPBG) member banks have given counter guarantee in favour of SBI. Such guarantee are secured by first charge on the fixed assets and second charge on the current assets of the Company on pari passu basis.

* Working Capital Loans from Banks are secured / to be secured by way of hypothecation of book debts and stocks including in-transit and other specified movable properties and second charge on all immovable properties of the Company. Buyers Credit facility is secured against non-fund based facility sanctioned to the Company._

(ii) Bills discounted with banks/others Rs.3,240.81 Lakhs (Previous Year: Rs.2,282.69 Lakhs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar and Allied Industries Limited (a subsidiary company) amounting to Rs.3,749.34 Lakhs (Previous Year Rs.10,393.04 Lakhs) (excluding penal interest, penalty etc.)

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation amounting to Rs.3,441.39 Lakhs (Previous Year Rs.9,195.04 Lakhs).

The Management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses will be fulfilled before expiry of the validity of respective advance licenses, accordingly and also on âGoing Concern Conceptâ basis there is no need to make any provision for custom duty saved.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs.1,456.31 Lakhs, Previous Year Rs.1,843.17 Lakhs) are Rs.4,329.86 Lakhs (Previous Year Rs.2,161.05 Lakhs).

3. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Honâble Supreme Court and on October 18, 2006 the matter was finally decided by The Honâble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid Rs.507.05 Lakhs (Previous Year Rs.507.05 Lakhs) (shown as recoverable under the head Other Current Assets) with State Government of Uttarakhand, which is still pending for refund of the amount.

4. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/R.S. export outside India. The matter is finally disposed of by Honâble High Court of Uttarakhand vide its Order dated 9^th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8, 2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and R.S. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Honâble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. A sum of Rs.106.15 Lakhs (Previous Year Rs.106.15 Lakhs) paid under protest is shown as recoverable from State Govt. of Uttarakhand, under the head Other Current Assets.

5. (a) (i) Company has Investment of Rs.5,427.50 Lakhs (Previous year Rs.5,427.50 Lakhs) in equity share capital and 10% cumulative redeemable preference share capital in its subsidiary company namely Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded and SSAIL has also been declared sick industrial undertaking as per provision of Sick Industrial Companies (Special Provisions) Act, 1985.

(ii) In earlier year, the company has also given to SSAIL-Inter corporate deposit (ICD) amounting to Rs.1,915.13 Lakhs (Previous Year Rs.1,915.13 Lakhs) (including interest thereon) and advances of Rs.8,453.81 Lakhs (Previous Year Rs.8,453.81 Lakhs) and also corporate guarantee extended of Rs.3,749.34 Lakhs (Previous Year Rs.10,393.04 Lakhs) (excluding penal interest, penalty etc).

(iii) Based upon the application and adoption of fair value of the aforesaid investment, ICD and advances are carried at nil value. No provision against corporate guarantee extended is considered necessary by the management after considering the intrinsic value of the investee assets.

(b) (i) In earlier year the company had given ( included in current Loan) Inter Corporate Deposit (ICD) of Rs.14,649.64 Lakhs (Previous Year Rs.14,649.64 Lakhs) to its subsidiary IGL Finance Ltd. (IGLFL) (A 100% subsidiary). IGLFL in earlier year had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL). NSEL had defaulted in settling the contracts on due dates, for which IGLFL has initiated legal and other action and in turn IGLFL did not pay back due amount to the company. Accordingly considering the prudence no interest on above ICD has been accrued for the period from 01-09-2013 onwards.

(ii) I n respect of the above, the Company has made a loss allowance of Rs.11,719.71 Lakhs based on expected credit loss Policy and other estimation made by the management and for balance Rs.2,929.93 Lakhs (and also fully provided for against equity investment of Rs.125.00 Lakhs) , the management and IGLFL is confident for recovery of dues from NSEL over a period of time and hence shown as good (considering the arrangement of merger of NSEL with Financial Technologies (India) Limited (FTIL) and other measure which have so far been taken for and pending before the Govt. and other authorities and current scenario/present state of affairs.).

6. The disclosures required under IND AS 19 âEmployee Benefitsâ are as given below :

A) Defined Contribution plan

Contribution to Defined Contribution Plan, recognized as expense for the Year is as under:

B) Defined Benefit Plan :

The employeesâ gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using by projected unit credit method in case of gratuity and Leave Encashment.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds. The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The above sensitivity analysis is based on change in an assumption while holding all other assumption constant in practice, this is unlikely to occur, and change in some of the assumption may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumption the same method [projected unit credit method] has been applied as when calculating the defined benefit obligation recognized within the balance sheet.

7. Financial risk management objectives and Policies

The Companyâs activities are exposed to a variety of financial risks from its operations. The key financial risks include market risk (including foreign currency risk, interest rate risk and commodity risk etc.), credit risk and liquidity risk. The companyâs overall risk management policy seeks to minimize potential adverse effects on companyâs financial performance.

(i) Market Risk: Market risk is the risk that the fair value of future cash flow of a financial instruments will fluctuate because of change in market prices. Market risk comprises mainly three types of risk: interest rate, currency risk and other price risk such as commodity price risk.

(a) Foreign Currency Risk: Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company has obtained foreign currency borrowing and has foreign currency trade payable and receivable and is therefore, exposed to foreign exchange risk.

After taking cognizance of the natural hedge, the company takes appropriate hedge to mitigate its risk resulting from fluctuation in foreign currency exchange rate(s).

Foreign Currency sensitivity: The following tables demonstrate the sensitivity to a reasonable possible change in Foreign Currency with all other variable held constant. The impact on companyâs profit/(loss) before tax is due to change in the foreign exchange rate for:

(b) Interest rate risk:-Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any change in the interest rates environment may impact future rates of borrowing. The company mitigates this risk by regularly assessing the market scenario, finding appropriate financial instruments, interest rate negotiation with the lenders for ensuring the cost effective method of financing.

Interest Rate Sensitivity: The following table demonstrates the sensitivity to a reasonable possible change in interest rate on financial assets affected. With all other variable held constant, the companyâs profit before tax is affected through the impact on finance cost with respect to our borrowing, as follows:

A change in 25 basis points in interest rates would have following impact on profit before tax

(c) Commodity Price risk: The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on quality.

(ii) Credit Risk:

Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, Inter Corporate deposit, derivative financial instruments, other balances with banks, loans and other receivables. The Companyâs exposure to credit risk is disclosed in Note 5, 6, 7, 10, 13 & 14.

Credit risk arising from investment derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counter parties are banks and recognised financial institutions with high credit ratings.

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized cost (other than trade receivables)

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss allowance.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss under the head âOther expensesâ.The balance sheet presentation for financial instruments is described below:

Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

(iii) Liquidity Risk: Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The companyâs approach to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.

The table below summarizes the maturity profile of companyâs financial liabilities based on contractual undiscounted payments:-

8. Capital risk management

The Companyâs policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. The primary objective of the Companyâs capital management is to maintain an optimal structure so as to maximize the shareholderâs value. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net Debt is calculated as borrowings less cash and cash equivalents.

9. Other current liabilities includes provision amounting to '' Nil (till Previous Year Rs.9,524.04 Lakhs) made against special discount allowed to an overseas party. Upon receipt of requisite approval from RBI, the amount has been adjusted out of provision made.

10. In the earlier year, the Company had filed a claim of Rs.4,815.06 Lakhs (including reinstatement loss Rs.622.63 Lakhs) with the insurance company for the reinstatement of machinery as well as loss incurred due to business interruption on account of fire at Kashipur Plant. On prudent basis the company has accounted for Rs.3,478.03 Lakhs (including reinstatement loss Rs.622.63 Lakhs). Against this in earlier Years Rs.1,097.44 Lakhs and during the year Rs.1,499.38 Lakhs has been received and balance of Rs.881.21 Lakhs being receivable from the Insurance Company, where management is confident about recovery of full amount and hence considered good.

11. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

12. Disclosures of leasing arrangements (Operating lease)

(a) The Company has operating lease for its Head office premises in Noida for a period up to 9 years. Lease agreements are locked-in for a period of first 3 years (Non-Cancellable period) and subsequently, the lease can be maintained at the option of the Company (lessee) (cancellable period). There are escalation clauses every 3 years.

The lease rentals charged during the year for cancellable and non-cancellable operating lease are as follows:

(b) The schedule of future minimum lease payment in respect of non-cancellable operating leases period is set out as under:

13. Derivative financial instruments

A. Commodity and Foreign Exchange Derivatives and exposures (as certified by the management).

(a) Outstanding at the year- end as follows:

(B) The Company uses derivative instruments for hedging possible losses and exchange fluctuation gain is Rs.758.27 Lakhs net off loss of Rs.3,439.86 Lakhs (Previous Year loss Rs.2,646.68 Lakhs net off gain of Rs.545.84 Lakhs) which is inclusive of loss of Rs.56.63 Lakhs (Previous Year loss of Rs.2,772.65 Lakhs) provision for mark to market gain/loss on account of outstanding financial transactions as on 31^st March 2018.

14. Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Fair value of borrowings from banks and other non-current financial liabilities, are estimated by discounting future cash flows using rates currently available for debt on similar terms and remaining maturities.

3) Other non-current receivables are evaluated by the Company, based on parameters such as interest rates, individual creditworthiness of the counterparty etc. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

4) The fair values of derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable parameters.

Fair Value hierarchy

All financial assets and liabilities for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows: -

Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. Level 3 - Inputs that are not based on observable market data.

The following table presents the fair value measurement hierarchy of financial assets and liabilities, which have been measured subsequent to initial recognition at fair value as at 31^st March, 2018 and 31^st March 2017:

During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under level 3.

15. (a) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand and other assets and also includes the following pre-operative expenses:

(b) The company has received loans at 2% & 5% from DBT for Bio- mass plant. The loans are recognised at fair value using prevailing market interest of equivalent loan. The difference between the gross proceed and fair value of the loan is the benefit derived from lower rate of interest and is recognised as deferred income. The fair value of loan as 31.03.2018 and 31.03.2017 are Rs.580.18 Lakhs and Rs.786.11 Lakhs respectively.

16. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited (IGLFL)

- Shakumbari Sugar and Allied Industries Limited (SSAIL)

- IGLCHEM International PTE. Ltd. (IGLCHEM)

- IGLCHEM International USA LLC (IGLCHEM US)

B. Key Management Personnel

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Jayshree Bhartia (Non - Executive Director)

- Pradip Kumar Khaitan (Independent Director)

- Jitender Balakrishanan (Independent Director)

- Ravi jhunjhunnwala (Independent Director)

- Jagmohan N. Kejriwal (Independent Director)

- R.C. Misra (until 28^th april 2016) (Independent Director)

- Ashwin Kumar Sharma (till 31^st August 2017 and re-appointment w.e.f 09^th Nov 2017) (Nominee Director of State Bank of India)

- Rakesh Bhartia (Chief Executive Officer)

- Anand Singhal (Chief Financial Officer)

- Kapil Bhalla (Company Secretary) (ceased on 15.04.2016)

- Ankur Jain (Company Secretary) (w.e.f. 1.07.2016)

C. Relatives of Key Management Personnel

- Pragya Bhartia

- Sajani Devi Bhartia#

- Pooja Bhartia

- Vedant Jhaver

- Anand Singhal (HUF)

- Rakesh Bhartia (HUF)

- Smita Bhartia

- Geeta Bhalla (Ceased on 15.04.2016)

D. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- Supreet Vyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

- IGL Infrastructure Private Limited. (IGL Infra)

- Khaitan & Company

- Khaitan & company LLP

- Lund & Blockley Pvt. Ltd

- Sukhvarsha Distributors Pvt. Ltd

E. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL)

F. Trust under company control

- India Glycols Limited Employees Group Gratuity Trust Scheme

# Including value of perquisites.

* As the liability for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.

$ Employer Contribution of Provident Fund

(b) Detail of remuneration to KMP:-

a) Chairman & Managing Director - Rs.270.64 Lakhs (Previous Year Rs.270.64 Lakhs*)

b) Executive Director - Rs.69.54 Lakhs (Previous Year Rs.68.77 Lakhs)

c) Chief Executive Officer - Rs.183.77 Lakhs (Previous Year Rs.185.45 Lakhs)

d) Chief Financial Officer - Rs.65.76 Lakhs (Previous Year Rs.63.32 Lakhs)

e) Company Secretary - Rs.33.77 Lakhs (Previous Year Rs.25.88 Lakhs)

* During the FY 2017-18, Central Government (CG) approved remuneration for Chairman and Managing Director (CMD) which was lower than applied for by the Company, against which a representation has been made to reconsider the matter. However, subsequent to closure of FY 2017-18, pending any response from CG, as a good governance, a sum of Rs. 58.58 Lakh has been refunded by the CMD.

(iv) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

- Polylink polymers (India) Ltd Rs.3.42 Lakhs (Previous Year '' Nil)

b) Purchase of Services are from:

- Polylink polymers (India) Ltd '' Nil (Previous Year Rs.45.14 Lakhs)

- Hindustan Wires Ltd Rs.32.70 Lakhs (Previous Year Rs.34.48 Lakhs)

- KIFTPL Rs.351.33 Lakhs (Previous Year Rs.176.94 Lakhs)

c) Sales of Material are to:

- IGLCHEM Rs.305.44 Lakhs (Previous Year Rs.1,579.08 Lakhs).

- IGLCHEM, US Rs.2,895.75 Lakhs (Previous Year Rs.1,542.18 Lakhs).

- Hindustan Wires Limited Rs.303.88 Lakhs (Previous Year Rs.264.24 Lakhs).

- KIFTPL '' Nil (Previous Year Rs.2.45 Lakhs)

d) Legal & Professional fees:

- Khaitan & Co Rs.4.25 Lakhs (Previous Year Rs.32.89 Lakhs).

- Khaitan & Co. LLP Rs.36.30 Lakhs (Previous Year Rs.14.50 Lakhs).

e) Inter Corporate Deposit / Other Deposits given includes to:

- SSAIL Rs.4,177.20 Lakhs (Previous Year '' Nil)

f) Interest Income includes from:

- SSAIL Rs.332.97 Lakhs (Previous Year Rs.135.03 Lakhs)

- IGLFL Rs.1,941.08 Lakhs (Previous Year Rs.1,941.08 Lakhs)

g) Interest Waived off includes:

- SSAIL Rs.135.03 Lakhs (Previous Year Rs.135.03 Lakhs)

- IGLFL Rs.1,941.08 Lakhs (Previous Year Rs.1,941.08 Lakhs)

h) Capital Advance Received back includes:

- Hindustan Wires Limited Rs.1,000.00 Lakhs (Previous Year '' Nil)

i) Reimbursement of expense made.

- Polylink Polymers (India) Ltd Rs.46.39 Lakhs (Previous Year Rs.2.41 Lakhs)

- Hindustan Wires Limited Rs.1.10 Lakhs (Previous Year Rs.2.69 Lakhs)

- IGL Infrastructure Rs.180.79 Lakhs (Previous Year '' Nil) j) Reimbursement of expense Received.

- IGL Infrastructure '' Nil (Previous Year Rs.48.73 Lakhs)

- KIFTPL Rs.6.04 Lakhs (Previous Year Rs.40.27 Lakhs) k) Rent & Maintenance Paid to :

- Polylink Polymers (India) Ltd. Rs.14.07 Lakhs (Previous Year Rs.13.80 Lakhs)

- Hindustan Wires Limited Rs.3.52 Lakhs (Previous Year Rs.3.45 Lakhs)

- IGL Infra Rs.1,086.84 Lakhs (Previous Year Rs.1,054.61 Lakhs)

- Kashipur Holding Limited Rs.10.99 Lakhs (Previous Year Rs.10.77 Lakhs)

- Ajay Commercial Co (P) Ltd Rs.2.34 Lakhs (Previous Year Rs.2.34 Lakhs)

- J.B. Commercial Co (P) Ltd Rs.2.34 Lakhs (Previous Year Rs.2.34 Lakhs) l) Vehicle Lease Paid to:

- Anand Singhal HUF Rs.9.00 Lakhs (Previous Year Rs.9.00 Lakhs )

- Smita Bhartia Rs.12.00 Lakhs (Previous Year Rs.12.00 Lakhs)

Balance Outstanding

m) ICD Receivable including interest includes:

- SSAIL Rs.6,270.48 Lakhs (Previous Year Rs.1,915.13 Lakhs). (Maximum balance outstanding during the year Rs.6,270.48 Lakhs, Previous Year Rs.1,915.13 Lakhs).

- IGLFL Rs.14,649.64 Lakhs (Previous Year Rs.14,649.64 Lakhs) (Maximum balance outstanding during the year Rs.14,649.64 Lakhs, Previous Year Rs.14,649.64 Lakhs).

n) Capital Advance receivable:

- Hindustan Wires Limited '' Nil (Previous Year Rs.1,000.00 Lakhs) o) Security Deposit receivable:

- Ajay Commercial Co. (P) Limited Rs.240.00 Lakhs (Previous Year Rs.240.00 Lakhs)

- J.B. Commercial Co. (P) Limited Rs.240.00 Lakhs (Previous YearRs.240.00 Lakhs)

- IGL Infra Rs.583.85 Lakhs (Previous Year Rs.583.5 Lakhs)

- US Bhartia Rs.500.00 Lakhs (Previous Year Rs.500.00 Lakhs) p) Others Receivable includes:

- SSAIL Rs.8,453.81 Lakhs (Previous Year Rs.8,453.81 Lakhs) (Maximum balance outstanding during the year Rs.8,453.81 Lakhs, Previous Year Rs.8,453.81 Lakhs).

- IGL CHEM Rs.312.48 Lakhs (Previous Year Rs.324.63 Lakhs). (Maximum balance outstanding during the year Rs.324.63 Lakhs, Previous Year Rs.3,077.99 Lakhs).

- IGL CHEM US Rs.282.14 Lakhs (Previous Year Rs.1,124.93 Lakhs). (Maximum balance outstanding during the year Rs.3,311.31 Lakhs, Previous Year Rs.1,267.15 Lakhs).

- IGL Finance Limited Rs.28.99 Lakhs (Previous Year Rs.13.72 Lakhs). (Maximum balance outstanding during the year Rs.28.99 Lakhs, Previous Year Rs.13.72 Lakhs).

q) Corporate guarantee outstanding-

Given to SSAIL Rs.3,749.34 Lakhs (Previous year Rs.10,393.04 Lakhs) r) Provision/Allowance relating to above Receivables

(i) Provision for Doubtful ICD including accrued Interest -SSAIL Rs.1,915.13 Lakhs (Previous Year Rs.1,915.13 Lakhs)

IGLFL Rs.11,719.71 Lakhs (Previous Year Rs.11,719.71 Lakhs)

(ii) Provision/Allowances for Doubtful Others

SSAIL Rs.8,453.81 Lakhs (Previous Year Rs.8,453.81 Lakhs)

17. Segment Information:

Disclosures as required by Indian Accounting Standard (Ind AS) 108 Operating Segments Identifications of Segments:

Segments have been identified in line with Indian Accounting Standard on âOperating Segmentsâ (Ind AS -108), taking into account the organizational structure as well as the differential risk and returns of this segment and as per the quantitative criteria specified under IND AS. The Company has identified the following segments: Operating Segments:

Industrial Chemical Segment comprises Glycols, Specialty Chemicals, Natural Gum & other related goods etc. Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

Nutraceutical comprises manufacture and sale of Nutraceutical Products

18. (a) In compliance with Ind AS 112 on Disclosure of Interests in Other Entities, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer :

19. Previous year figure were audited by another firm of chartered Accountants.

Mar 31, 2017

Notes:

(i) The Company has elected to measure the items of Property, Plant and equipment at their fair value on date of transition. Refer Note No. 64.

(ii) The Company revised life of certain Plant & Equipment to 40-48 years and also changed calculation method of depreciation from W.D.V to S.L.M in case of Plant & Equipment of E.O.Derivative on the date of transition.

# Gross block includes Rs, 99.98 Lacs (Previous Year Rs, 137.30 Lacs) secured by hypothecation against loan.

@ Gross Block includes Rs, 79.77 Lacs Pending transfer of title in the name of the Company.

* Includes depreciation charged to General reserve Rs, 174.35 Lacs In view of adoption of Component Accounting as prescribed in Companies Act 2013.

Nature of reserves

Reserve from Contingencies are created in earlier years to meet any contingencies in future and in the nature of free reserve.

Retained Earnings includes Rs, 60,258.87 Lacs (net of deferred tax) being amount credited on account of fair valuation of Property, Plant and Equipment on the date of transition to Ind-As.

2 Rupee Term Loans includes loans from Banks of ? 12.19 Lacs and loans from others of ? 87.79 Lacs secured by hypothecation of Motor Vehicles purchased there under which is repayable on different dates. Further, Rupee Term Loans from others includes ? 926.25 Lacs secured against bank guarantee, (read with para 10 & 11)

3 Term Loan from bank of ? 511.00 Lacs, is repayable 1 installment of ? 511.00 lacs in May 2017.

4 Term Loan from bank of ? 3,336.00 Lacs, is repayable in 3 quarterly installments of ? 833.00 Lacs commencing from April 2017 and one installment of ? 837.00 Lacs in January 2018.

5 Term Loan from bank of ? 364.00 Lacs, is repayable in 1 installment of ? 118.85 Lacs in June 2017 and 1 installment of ? 245.15 Lacs in Sep 2017.

6 Term Loan from bank of ? 1062.90 Lacs , is repayable in 5 equal quarterly installments of ? 212.58 Lacs each commencing from Apr. 2017.

7 Term Loan from bank of ? 3,125.00 Lacs, is repayable in 5 equal quarterly installments is ? 625.00 Lacs each commencing from July 2017.

8 Term Loan from bank of ? 3,015.76 Lacs (USD 46.50 Lacs), is repayable in 11 monthly installments, 1 installment of ? 180.00 Lacs, 7 equal monthly installments of ? 271.67 Lacs, 2 monthly installments of ? 345.00 Lacs and 1 installment of ? 244.07 Lacs commencing from May 2017.

9 Term Loan from bank of ? 2,187.50 Lacs , is repayable in 7 equal quarterly installments is ? 312.50 Lacs each commencing from May 2017.

10 Term Loan from DBT Bio-pharma ? 136.63 Lacs net off ? 13.37 Lacs for deferred Govt. Grant, is repayable in 3 equal half yearly installments.

11 Term Loan from DBT Bio-pharma ? 649.48 Lacs net off ? 126.77 for deferred Govt. Grant, is repayable in 10 equal half yearly installments commencing from July 2017.

12 Term Loan from Body Corporate of ? 500 Lacs is repayble in April 2017 .

13 Term Loan from Body Corporate of ? 500 Lacs is repayble in June 2017 .

14 Outstanding Rupee Term loan facilities carries floating rate of interest i.e. banks base rate plus applicable spread ranging from 200 bps to 350 bps. Outstanding foreign currency loan carries rate of interest, equivalent to applicable LIBOR plus applicable 400 bps.

@ Excluding show cause notice (SCNs), where management is confident that on merits SCNs will be dropped and also as legally advised possibility of an outflow of fund is remote.

(ii) Bills discounted with banks/others Rs, 2,282.69 Lacs (Previous Year: Rs, 1,703.13 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar and Allied Industries Limited (a subsidiary company) amounting to Rs, 10,393.04 lacs (Previous Year Rs, 10,845.38 Lacs) (excluding penal interest, penalty etc.) (Refer Note No. 42(a)(iii)).

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs, 9,195.04 lacs (Previous Year Rs, 2,807.51 Lacs).

The Management is of the view that considering the past export performance and future prospects there is certainity that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licenses. Accordingly and on âGoing Concern Conceptâ basis there is no need to make any provision for custom duty saved.

10. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs, 1,843.17 Lacs, Previous Year Rs, 2,638.94 Lacs) are Rs, 2,161.05 Lacs (Previous Year Rs, 2,609.53 Lacs).

11. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Honâble Supreme Court and on October 18, 2006 the matter was finally decided by The Honâble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid of Rs, 507.05 Lacs (Previous Year Rs, 507.05 Lacs) (shown as recoverable under the head Other Current Assets) with State Government of Uttarakhand, which is still pending for refund of the amount.

12. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/R.S. export outside India. The matter is finally disposed of by Honâble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8, 2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and R.S. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Honâble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of Rs, 106.15 Lacs (Previous Year Rs, 106.15 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand, under the head Other Current Assets.

13. (a) (i) Company has investment of Rs, 5,427.50 Lacs (Previous Year Rs, 5,427.50 Lacs) in equity share capital

(ii) In earlier year, the Company has also given to SSAIL- Inter corporate deposit amounting to Rs, 1,915.13 Lacs (Previous Year Rs, 1,915.13 Lacs) (including interest thereon) and advances of Rs, 8,453.81 Lacs (Previous Year Rs, 8,453.81 Lacs) and also corporate guarantee extended read with note no 38(A)(iii) of Rs, 10,393.04 lacs (Previous Year Rs, 10,845.38 Lacs) (excluding penal interest, penalty etc).

Section 13(4) of SARFAESI on SSAIL and IGL, which has been challenged at DRT, Lucknow. As per the legal opinion, the notice issued by the CBI is not valid since SSAIL is also been registered with BIFR as sick industrial Company. Further BIFR vide its order dated 24.09.2015 had rejected the appeal of CBI for seeking recovery certificate and against the order of BIFR, appeal of CBI was pending before Appellate Authority for Industrial and Financial Reconstruction (AAIFR) .In the year 2013-14 the BIFR had appointed IDBI as the Operating Agency (OA) to prepare a revival scheme and also the company had filed a Draft Rehabilitation Scheme with the BIFR. With the abolition of BIFR, the company continues to evaluate and explore options in consultation with expert(s) and stakeholders for restructuring/revival/disinvestment.

(iv) (a) On adoption of fair value as deemed cost on the date of transition, investment (preference & equity share) in stated subsidiary SSAIL and loss allowance in respect of corporate Deposit (including accrued Interest) and advances has been given impact on the date of transition to Ind AS (to be read with note (c) below) .

(b) No provision against corporate guarantee extended is considered necessary by the management after considering the intrinsic value of the investee assets and considering the provision of other exposures already made by the Company.

(b) (i) In earlier year the company had given ( included in current Loan) Inter Corporate Deposit (ICD) of Rs, 14,649.64 Lacs (Previous Year Rs, 14,649.64 Lacs) to its subsidiary IGL Finance Ltd. (iGLFL) (A 100% subsidiary). IGLFL in earlier year had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL). NSEL had defaulted in settling the contracts on due dates, for which IGLFL has initiated legal and other action and in turn IGLFL did not pay back due amount to the company. Accordingly considering the prudence no interest on above ICD has been accrued for the period from 01-09-2013 onwards. (This to be read with note( C) below)

(ii) On the date of transition to IND AS, the Company has made a loss allowance of Rs, 11,719.71 Lacs based on expected credit loss Policy and other estimation made by the management and for balance Rs, 2,929.93 Lacs (and also fully provided for against equity investment of Rs, 125.00 Lacs) , the management and IGLFL is confident for recovery of dues from NSEL over a period of time and hence shown as good (considering the arrangement of merger of NSEL with Financial Technologies (India) Limited (FTIL) and other measure which have so far been taken for and pending before the Govt. and other authorities and current scenario/present state of affairs.).(This to be read with note (c) below).

(c ) Company had received letters dated 30th Oct 2014 and 05th May 2015 from National Stock Exchange of India Limited (NSE), wherein the Company has been advised to reinstate its financial statement w.r.t. qualification raised for the years FY 2012-13 by the statutory auditor on investments and loans to SSAIL and suitably rectified the qualification raised for the year FY 2013-14 by the statutory auditor w.r.t. investment and loan to IGLFL respectively. For the above matters, the Company has submitted reply based on legal advice.

14. The disclosures required under Ind AS 19 âEmployee Benefitsâ notified in the Companies (Accounting Standards) Rules, 2006 are as given below :

A) Defined Contribution plan

Contribution to Defined Contribution Plan, recognized as expense for the Year is as under:

B) Defined Benefit Plan :

15. Financial risk management objectives and Policies

After taking cognizance of the natural hedge, the company takes appropriate hedge to mitigate its risk resulting from fluctuation in foreign currency exchange rate(s).

(b) Interest rate risk:-lnterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any change in the interest rates environment may impact future rates of borrowing. The company mitigates this risk by regularly assessing the market scenario, finding appropriate financial instruments, interest rate negotiation with the lenders for ensuring the cost effective method of financing.

A change in 25 basis points in interest rates would have following impact on profit before tax

(ii) Credit Risk:

Credit risk arising from investment derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counter parties are banks and recognized financial institutions with high credit ratings.

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized cost (other than trade receivables)

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss allowance.

In case of other assets, the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. Subsequently, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance. Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date.

* Refer Note no. 16ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss under the head âOther expensesâ. The balance sheet presentation for financial instruments is described below:

Financial assets measured as at amortized cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

The table below summarizes the maturity profile of companyâs financial liabilities based on contractual undiscounted payments :-

17. Capital risk management

* Borrowing does not includes advances from the customers @ Including and read with note no 17A.

18. Other current liabilities includes provision amounting to Rs, 9,524.04 Lacs (till Previous Year Rs, 14,167.57 Lacs) made against special discount allowed to an overseas party, pending receipt of approval of RBI.

19. Balances of certain receivable, payable, (including of party stated in note 46 above), other financial assets and other advances are subject to confirmation and reconciliation.

20. In the earlier year, the Company had filed a claim of Rs, 4,815.06 Lacs (including reinstatement loss Rs, 622.63 Lacs) with the insurance company for the reinstatement of machinery as well as loss incurred due to business interruption on account of fire at Kashipur Plant and on prudent basis accounted for Rs, 3,029.63 Lacs (including reinstatement loss Rs, 622.63 Lacs). Against this in earlier Years Rs, 348.64 Lacs and during the year Rs, 748.80 Lacs has been received and balance of Rs, 1,932.19 Lacs being receivable from the Insurance Company, where management is confident about recovery of full amount and hence considered good.

21. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

The above informationâs regarding micro, small and medium enterprise has been determined to the extent such parties have been identified of information available with the Company and as certified by the management.

* Includes Rs, 0.25 Lacs of earlier year.

22. (i) Disclosures of leasing arrangements (Operating lease)

(B) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs, 2,646.68 Lacs net off gain of Rs, 545.84 Lacs (Previous Year loss Rs, 209.99 Lacs net off gain of Rs, 1,193.91 Lacs) which is inclusive of loss of Rs, 2,772.65 Lacs (Previous Year loss of Rs, 505.06 Lacs) provision for mark to market gain/loss on account of outstanding financial transactions as on 31^st March 2017.

23. Fair valuation techniques

The following methods and assumptions were used to estimate the fair values:

4) Fair value of Investments in quoted non-current Equity Shares are based on quoted market price at the reporting date.

5) The fair values of derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable parameters.

Fair Value hierarchy

All financial assets and liabilities for which fair value is measured in the financial statements are categorized within the fair value hierarchy, described as follows: -

Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. Level 3 - Inputs that are not based on observable market data.

During the year ended March 31, 2017 and March 31, 2016, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under level 3.

24. Exceptional item includes:

(a)A Provision/ Liability of Rs, Nil (Previous Year Rs, 49.04 Lacs) has been created against final settlement of foreign exchange contract related dispute; (b)Loss on account of exchange rate differences amounting to Rs, Nil [Previous Year Rs, 4,375.05 Lacs (net of gain of Rs, 3,830.44 Lacs)] on payment, settlement as well as reinstatement of short term foreign currency borrowings and other monetary assets/ liabilities; (c) Provision on account to special discount to an overseas overdue receivables amounting to Rs, Nil (Previous Year Rs, 746.02 Lacs), in view of remote chances of realization on account of steep fall in price in the international commodity market. (d) Loss on sale of spent silver catalyst amounting to Rs, Nil (Previous Year Rs, 917.00 Lacs).

25 (a) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand and other assets and also includes the following pre-operative expenses:

(b) The company has received loans at 2% & 5% from DBT for Bio- mass plant. The loans are recognized at fair value using prevailing market interest of equivalent loan. The difference between the gross proceed and fair value of the loan is the benefit derived from lower rate of interest and is recognized as deferred income. Loan as at 1^st april 2015 was carried at historical cost (refer note 1 of exemption availed). The fair value of loan as 31.03.2017 and 31.03.2016 are Rs, 786.11 Lacs and Rs, 682.94 Lacs respectively.

26. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited (IGLFL)

- Shakumbari Sugar and Allied Industries Limited (SSAIL)

- IGLCHEM International PTE. Ltd. (IGLCHEM)

- IGLCHEM International USA LLC (IGLCHEM US)

- IGL Infrastructure Private Limited (IGL Infra) (Ceased on 14.09.2015)

B. Key Management Personnel

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Jayshree Bhartia (Non - Executive Director)

- Pradip Kumar Khaitan (Independent Director)

- Jitender Balakrishanan (Independent Director)

- Ravi Jhunjhunwala (Independent Director)

- Jagmohan N. Kejriwal (Independent Director)

- R.C. Misra (until 28^th April 2016) (Independent Director)

- Ashwini Kumar Sharma (w.e.f. 01.09.2015 (Non - Executive Director)

- Rakesh Bhartia (Chief Executive Officer)

- Anand Singhal (Chief Financial Officer)

- Lalit Kumar Sharma (Company Secretary) (ceased on 31.05.2015)

- Kapil Bhalla (Company Secretary) (ceased on 15.04.2016)

- Ankur Jain (Company Secretary) (w.e.f. 1.07.2016)

C. Relatives of Key Management Personnel

- Pragya Bhartia

- Anand Singhal (HUF)

- Rakesh Bhartia (HUF)

- Smita Bhartia

- Alpna Sharma (Ceased on 31.05.2015)

- Geeta Bhalla (Ceased on 15.04.2016)

D. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- Supreet Vyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

- IGL Infrastructure Private Limited. (IGL Infra) (w.e.f. 15.09.2015)

- Khaitan & Company

- Khaitan & company LLP

E. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL)

F. Trust under company control

- India Glycols Limited Employees Group Gratuity Trust Scheme

# Including value of perquisites.

* As the liability for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.

$ Employer Contribution of Provident Fund

(b) Detail of remuneration to KMP:-

a) Chairman & Managing Director - Rs, 270.64 Lacs (Previous Year Rs, 151.70 Lacs)

b) Executive Director - Rs, 68.77 Lacs (Previous Year Rs, 69.52 Lacs)

c) Chief Executive Officer - Rs, 185.45 Lacs (Previous Year Rs, 185.88 Lacs)

d) Chief Financial Officer - Rs, 63.32 Lacs (Previous Year Rs, 52.74 Lacs)

e) Company Secretary - Rs, 25.88 Lacs (Previous Year Rs, 22.35 Lacs)

(iv) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

- SSAIL Rs, Nil (Previous Year Rs,. 403.81 Lacs).

b) Purchase of Services are from:

- Polylink Polymers (India) Ltd Rs, 45.14 Lacs (Previous Year Rs, Nil)

- Hindustan Wires Ltd Rs, 34.48 Lacs (Previous Year Rs, 34.17 Lacs)

- KIFTPL Rs, 176.94 Lacs (Previous Year Rs, Nil)

c) Sales of Material are to:

- IGLCHEM Rs, 1,579.08 Lacs (Previous Year Rs, 5,249.09 Lacs).

- IGLCHEM US Rs, 1,542.18 Lacs (Previous Year Rs, 307.46 Lacs).

- Hindustan Wires Limited Rs, 264.24Lacs (Previous Year Rs, 244.15 Lacs).

- KIFTPL Rs, 2.45 Lacs (Previous Year Rs, Nil)

d) Legal & Professional fees:

- Khaitan & Co Rs,32.89 Lacs (Previous Year Rs, Nil).

- Khaitan & Co. LLP Rs, 14.50 Lacs (Previous Year Rs, 41.04 Lacs).

e) Inter Corporate Deposit / Other Deposits given includes to:

- IGL Infra Rs, Nil (Previous Year Rs, 596.74 Lacs)

f) Inter Corporate Deposit / Others Deposits received back includes from:

- IGL Infra Rs, Nil (Previous Year Rs, 611.74 Lacs)

g) Advance against Agreement includes to:

- Kashipur Holding Ltd Rs, Nil (Previous Year Rs, 2,663.00 Lacs)

h) Advance received back includes to:

- Kashipur Holding Ltd Rs, Nil (Previous Year Rs, 2,663.00 Lacs)

i) Interest Income includes from:

- SSAIL Rs, 135.03 Lacs (Previous Year Rs, 135.03 Lacs)

- IGLFL Rs, 1,941.08 Lacs (Previous Year Rs, 1,941.08 Lacs)

- IGL Infra Rs, Nil (Previous Year Rs, 16.56 Lacs)

- Kashipur Holding Ltd Rs, Nil (Previous Year Rs, 44.95 Lacs) j) Interest Waived off includes:

- SSAIL Rs, 135.03 Lacs (Previous Year Rs, 135.03 Lacs)

- IGLFL Rs, 1,941.08 Lacs (Previous Year Rs, 1,941.08 Lacs) k) Advance given includes:

- SSAIL Rs,. Nil (Previous Year Rs, 152.90 Lacs)

- KIFTPL Rs, Nil (Previous Year Rs, 180.00 Lacs) l) Advance Received back includes:

- SSAIL Rs, Nil (Previous Year Rs, 152.90 Lacs)

- KIFTPL Rs, Nil (Previous Year Rs,180.00 Lacs) m) Security Deposit given to

- IGL Infra Rs, Nil (Previous Year Rs, 583.85 Lacs) n) Investment in Equity Share

- IGLCHEM US Rs, Nil (Previous Year Rs, 64.17 Lacs)

o) Transaction Purchase of Investment

- Supreet Vyapaar Pvt Ltd Rs, Nil (Previous Year Rs, 15.00 Lacs)

- J Boseck & Co Pvt Ltd Rs, Nil (Previous Year Rs, 57.00 Lacs)

- Facit Commosales (P) Ltd Rs, Nil (Previous Year Rs, 57.00 Lacs)

- J. B. Commercial Co. (P) Ltd Rs, Nil (Previous Year Rs, 57.00 Lacs)

- Hindustan Wires Limited Rs, Nil (Previous Year Rs, 57.00 Lacs)

- Kashipur Holdings Limited Rs, Nil (Previous Year Rs,57.00 Lacs) p) Reimbursement of expense made.

- Polylink Polymers (India) Ltd Rs, 2.41 Lacs (Previous Year Rs, 47.83 Lacs) q) Reimbursement of expense Received.

- IGL Infrastructure Rs, 48.73 Lacs (Previous Year Rs, 580.57 Lacs)

- KIFTPL Rs, 40.27 Lacs (Previous Year Rs, 19.71 Lacs) r) Payment of Income received.

- IGL Infrastructure Rs, Nil (Previous Year Rs, 357.56 Lacs) s) Inter Corporate Deposit received includes from:

- Kashipur Holding Limited Rs, Nil (Previous Year Rs, 700.00 Lacs). t) Inter Corporate Deposit paid back includes to:

- Kashipur Holding Limited Rs, Nil (Previous Year Rs, 700.00 Lacs).

u) Interest Expense includes to:

- Kashipur Holding Limited Rs, Nil (Previous Year Rs, 113.17 Lacs). v) Rent & Maintenance Paid to :

- Polylink Polymers (India) Ltd. Rs,13.80 Lacs (Previous Year Rs, 13.67 Lacs)

- IGL Infra Rs, 1,054.61 Lacs (Previous Year Rs, 1,041.42 Lacs)

- Kashipur Holding Limited Rs, 10.77 Lacs (Previous Year Rs, 10.68 Lacs) w) Vehicle Lease Paid to:

- Rakesh Bhartia HUF Rs, Nil (Previous Year Rs, 1.06 Lacs)

- Anand Singhal HUF Rs, 9 Lacs (Previous Year Rs, 6.00 Lacs)

- Alpna Sharma Rs, Nil (Previous Year Rs, 0.50 Lacs)

- Smita Bhartia Rs, 12 Lacs (Previous Year Rs, 10.00 Lacs)

- Geeta Bhalla Rs, Nil (Previous Year Rs,1.94 Lacs)

Balance Outstanding

x) ICD Receivable including interest includes:

- SSAIL Rs, 1,915.13 Lacs(Previous Year Rs, 1,915.13 Lacs). (Maximum balance outstanding during the year Rs, 1,915.13 Lacs, Previous Year Rs, 1,915.13 Lacs).

- IGLFL Rs, 14,649.64 Lacs (Previous Year Rs, 14,649.64 Lacs) (Maximum balance outstanding during the year Rs, 14,649.64 Lacs, Previous Year Rs, 14,649.64 Lacs).

y) Capital Advance receivable:

- Hindustan Wires Limited Rs, 1,000.00 Lacs (Previous Year Rs, 1,000.00 Lacs)

z) Security Deposit receivable:

- Ajay Commercial Co. (P) Limited Rs, 240.00 Lacs (Previous Year Rs, 240.00 Lacs)

- J.B. Commercial Co. (P) Limited Rs, 240.00 Lacs (Previous Year Rs, 240.00 Lacs)

- IGL Infra Rs, 583.85 Lacs (Previous Year Rs, 583.5 Lacs)

- US Bhartia Rs, 500.00 Lacs (Previous Year Rs, 500.00 Lacs)

aa) Others Receivable includes:

- SSAIL Rs, 8,453.81 Lacs (Previous Year Rs, 8,453.81 Lacs) (Maximum balance outstanding during the year Rs, 8,453.81 Lacs, Previous Year Rs, 8,658.98 Lacs).

- IGL CHEM Rs, 324.63 Lacs (Previous Year Rs, 1,840.92 Lacs). (Maximum balance outstanding during the year Rs, 3,077.99 Lacs, Previous Year Rs, 3,569.69 Lacs).

- IGL CHEM US Rs, 1,124.93 Lacs (Previous Year Rs, 228.03 Lacs). (Maximum balance outstanding during the year Rs, 1,267.15 Lacs, Previous Year Rs, 228.03 Lacs).

ab) Corporate guarantee outstanding-

Given to SSAIL Rs, 10,393.04 lacs (Previous year Rs, 10,845.38 lacs)

ac) Provision/Allowance relating to above Receivables

(i) Provision for Doubtful ICD including accrued Interest -SSAIL Rs, 1,915.13 Lacs(Previous Year Rs, 1,915.13 Lacs)

IGLFL Rs, 11,719.71 Lacs (Previous Year Rs, 11,719.71 Lacs)

(ii) Provision/Allowances for Doubtful Others

SSAIL Rs, 8,453.81 Lacs(Previous Year Rs, 8,453.81 Lacs)

27. (a) In compliance with Ind AS 112 on Disclosure of Interests in Other Entities, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer :

(b) Standard issued but not yet effective

Amendments to Ind AS 7, âStatements of cash flowsâ as per notification issued by the Ministry of Corporate Affairs in March, 2017 in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, âStatements of cash flowsâ is applicable to the Company from April 1,2017. Amendment to Ind AS 7

The amendments to Ind AS 7, requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The Company is evaluating the requirements of the amendment.

28. Segment Information:

Disclosures as required by Indian Accounting Standard (Ind AS) 108 Operating Segments Identifications of Segments:

Industrial Chemical Segment comprises Glycols, Specialty Chemicals, Natural Gum & other related goods etc. Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

Nutraceutical (Previously termed as Herbal) comprises manufacture and sale of Nutraceutical Products.

29. Principal differences between IND AS and Indian GAAP

The following reconciliations provide a quantification of the effect of significant differences arising as a result of transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

- Equity as at April 1, 2015

- Equity as at March 31, 2016

- Profit/(Loss) for the year ended March 31, 2016

- Balance Sheet as at April 1, 2015

- Balance as at March 31, 2016

Footnotes :

Measurement and recognition difference as on April 1, 2015 & for year ended March 31, 2016

a) Property, Plant and Equipment (PPE)- Fair Value as Deemed cost in IND AS

The Company has elected the option to fair value as deemed cost for PPE as on the date of transition to Ind AS. This has resulted in increase of in the value by Rs, 87,089.87 lacs PPE with corresponding credit to retained earnings by Rs, 60,258.87 (net of Deferred Tax Liability of Rs, 26,831.00 lacs) .Further the company has also revised useful life of certain Plant & Machinery based on the assessment made by management and technical consultant. Also method of providing depreciation has been changed from WDV to SLM in case of Plant & Machinery of E.O. Derivative and major spares parts where life more than one year has been capitalized as on date of transition to Ind AS

Above has resulted in additional depreciation charge to statement of P & L by Rs, 1191.68 Lacs and accordingly inventory is higher by Rs, 44.15 Lacs during the year ended 31st March, 2016.

b) Fair valuation of financial assets and liabilities

Under Indian GAAP, receivables and payables were measured at transaction cost less allowances for impairment, if any. Under IND AS, these financial assets and liabilities are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less allowance for impairment, if any. The resulting finance charge or income is included in finance expense or finance income in the Statement of Profit and Loss for financial liabilities and financial assets respectively.

c) Investments others than investment in subsidiary and joint venture.

Under Indian GAAP non-current investments other than investment in subsidiary, joint venture are measured at cost less any permanent diminution in value of investment. Difference between the cost and market price is recognized in profit and loss.

Under IND AS investments are designated as fair value through profit and loss (FVTPL).

d) Investment in subsidiary and joint ventures

The impact for adoption of fair valued deemed cost of investment (preference & equity share) in certain subsidiary has caused decrease in value of investment by Rs, 5,552.50 Lacs with corresponding effect (net of deferred tax) in retained earnings as on the date of transition.

e) Cost of borrowing

Borrowing designated and carried at amortized cost are accounted on EIR method. The upfront fee or cost of borrowing incurred is deferred and accounted on EIR. Borrowings are shown as net of unamortized amount of upfront fee incurred.

f) Expected credit loss

(i) Under Ind AS, impairment loss, has been determined based on expected credit loss model (ECL).

(ii) In respect of Inter corporate Deposit and advances given to Subsidiary - SSAIL and Inter corporate Deposit in subsidiary- IGL Finance Limited, the Company has made a loss allowance amounting to Rs, 14,444.00 Lacs (Net of deferred tax) based on expected credit loss Policy (read with note no 42 (c) ).

(iii) Further, in view of para (i) above, a loss allowance amounting to Rs, 1505.37 Lacs (Net of deferred tax) on Financial assets has been recognized on the date of transition to Ind AS and Rs, 493.81 Lacs (Net of deferred tax) for the year ended 31st March 2016 has been recognized in the statement of profit and loss.

g) MAT entitlement credit being of the nature of deferred tax, on transition to IND AS MAT credit entitlement of Rs, 8,075.74 lacs and Rs, 7,665.95 lacs for April 1, 2015 and March 31, 2016 respectively has been regrouped under deferred tax liability from Current tax assets (net).

h) Financial assets and financial liabilities measured at amortized cost

Under Ind AS 109- financial instruments, security deposit are required to be valued at fair value and difference between cost and fair value is to be amortized over the period of security as rental expenses and consequently interest income to be booked effective interest method in statement of Profit & loss.

i) As per the option available, the Company has not availed the exemption relating to accounting for exchange differences arising from translation of long term foreign currency monetary liabilities and accordingly :

(a). The foreign currency monetary Item translation difference of Rs, 457.10 Lacs (net of deferred tax) have been transferred to Retained Earning on the date of transition with corresponding effect in Statement of Profit and Loss during 2015-16.

(b). The capitalization of loss on foreign currency fluctuation on long term foreign currency monetary liabilities under the IND GAAP of Rs, 80.11 Lacs has been transferred to Statement of Profit and Loss during 2015-16.

j) Deferred Tax

The Company has accounted for deferred tax on the various adjustments between Indian GAAP and IND AS at the tax rate at which they are expected to be reversed.

The Company has fair valued investment in subsidiaries on transition, considering that there would be no long term capital gain in foreseeable future period, no deferred tax assets has been created on the fair valuation impact.

k) Government grant -

Under previous GAAP, Government Grant received under Investment promotion scheme was accounted in capital reserve under equity. Under IND AS the grant has to be recognized in Statement of Profit and Loss on a systematic basis over the life of the asset/project. For this purpose the grant accrued and received has been recognized as Government grant received in advance for period prior to transition date and for 2015-16. Due to this change Rs, 493.25 lacs and Rs, 30.00 lacs of capital reserve is derecognized and recognized as Government grant for transition date and 2015-16 respectively. Also the grant is amortized retrospectively for periods prior to transition date and accounted as other income. Due to this other income of Rs, 78.70 lacs is adjusted against opening retained earnings for period prior to transition date and Rs, 11.48 lacs is recognized as other income in 2015-16.

l) Defined benefit obligations-

The impact of change in actuarial assumption and experience adjustments for defined benefit obligation towards gratuity liability is accounted in the Statement of Other Comprehensive Income and corresponding tax impact on the same. Due to this, Rs, 33.67 lacs (Net of deferred tax) for the period ended March 31, 2016, tax credit there on is shown in OCI and reversal in Statement of Profit and loss.

m) Statement of Cash Flows

The impact of transition from Indian GAAP to IND AS on the Statement of Cash Flows is due to various reclassification adjustments recorded under IND AS in Balance Sheet, Statement of Profit & Loss.

n) Excise Duty

Excise duty of Rs, 95,147.10 Lacs on account of sale of goods have been included in revenue as it is on own account because it is a liability of the manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or not.

30. Previous yearâs figures have been regrouped/rearranged/recast wherever considered necessary.

As per our report of even date.

Mar 31, 2016

a) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.

b) Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities

1. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon''ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon''ble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid of Rs. 507.05 Lacs (Previous Year Rs. 507.05 Lacs) (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

2. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/R.S. export outside India. The matter is finally disposed of by Hon''ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8,2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and R.S. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon''ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of Rs.106.15 Lacs (Previous Year Rs.106.15 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand,under the head Short Term Loans and Advances.

3. (A) (i) Company has investment of Rs. 5,427.50 Lacs (Previous Year Rs. 5,427.50 Lacs) in equity share capital

and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985. Considering the intrinsic value of the investee assets, long term nature of investment and filing of TEV (Technical Evaluation Study) report, and revival scheme by the operating agency (OA- IDBI)so appointed as directed by the Hon''ble Board for Industrial and Financial Reconstruction (BIFR),no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to Rs. 1,915.13 Lacs (Previous Year Rs. 1,915.13 Lacs) (including interest thereon) and advances of Rs. 8,453.81 Lacs (Previous Year Rs. 8,453.81 Lacs), where management is confident about recoverability/ realisability of the same. Accordingly, considering the facts as stated in Para (i) above and read with comment in Para (iii) below, amount is considered good and fully recoverable and no provision there against and also against corporate guarantee extended read with note no 28 A (iii) of Rs. 10,845.38 Lacs (Previous year Rs. 12,045.43 Lacs) (excluding penal interest, penalty etc) is considered necessary by the management.

(iii) Central Bank of India (CBI) vide its letter dated 28.05.2014 had issued a notice under Section 13(2) of SARFAESI Act 2002 to SSAIL and IGL. The said notice was replied by SSAIL and IGL has challenged the legality of issuance of such notices. CBI, thereafter, on 11.09.2014 had issued another notice under Section 13(4) of SARFAESI on SSAIL and IGL, which has been challenged at DRT, Lucknow. As per the legal opinion, the notice issued by the CBI is not valid since SSAIL is registered with BIFR as sick industrial Company. Meanwhile BIFR vide its order dated 24.09.2015 has rejected the appeal of CBI for seeking recovery certificate, against the order of BIFR, CBI has filed an appeal before Appellate Authority for Industrial and Financial Reconstruction (AAIFR) which is pending.

(B) (i) Short term loans and advances to related party includes Inter Corporate Deposit (ICD) amounting to

Rs.14,649.64 Lacs (Previous Year Rs. 14,649.64 Lacs) given to IGL Finance Ltd. (IGLFL), a 100% subsidiary of the company. IGLFL in earlier year had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL). NSEL had defaulted in settling the contracts on due dates, for which IGLFL has initiated legal and other action and in turn IGLFL did not pay due amount to the company. Accordingly considering the prudence no interest on above ICD has been accrued for the period from 01-09-2013 onwards. Further considering the arrangement of merger of NSEL with Financial Technologies (India) Limited (FTIL) and other measure which have so far been taken for and pending before the Govt. and other authorities, the management and IGLFL is confident for recovery of dues from NSEL over a period of time.

(ii) Considering above no provision has been considered necessary at this stage against total exposure in IGLFL of Rs. 14,774.64 Lacs (Previous Year Rs. 14,774.64 Lacs) (including Investment in capital of Rs.125.00 Lacs), and the same is considered good and fully recoverable, by the management.

(C) Company has received letters dated 30^th Oct 2014 and 05^th May 2015 from National Stock Exchange of India (NSE), wherein the Company has been advised to reinstate its financial statement w.r.t. qualification raised for the years FY 2012-13 by the statutory auditor on investments and loans to SSAIL (Note no. 33 (A) (i) &(ii)) and suitably rectified the qualification raised for the year FY 2013-14 by the statutory auditor w.r.t. investment and loan to IGLFL (Note no. 33 (B)) respectively. For the above matters, the Company has submitted reply based on legal advice.

4. During the year, the Company had divested its entire stake of Rs. 5 Lacs (50,000 equity Share Capital) in wholly owned subsidiary IGL Infrastructure Private Limited for consideration of Rs. 300.00 Lacs and further invested Rs. 64.17 Lacs in equity capital of wholly owned subsidiary IGL Chem International USA LLC.

5. The Company had filed a claim in earlier year of Rs. 4,815.06 Lacs (including reinstatement loss Rs. 622.63 Lacs) with the insurance company for the reinstatement of machinery as well as loss incurred due to business interruption on account of fire at Kashipur Plant and on prudent basis accounted for Rs. 3,029.63 Lacs (including reinstatement loss Rs. 622.63 Lacs) in previous year. Against this in P.Y. Rs. 348.64 Lacs (since Balance Sheet Date the Company has also received Rs. 748.80 Lacs) has been received and balance of Rs. 2,680.99 Lacs being receivable from the Insurance Company is shown under short term loans & advances, where management is confident about recovery of full amount and hence considered good.

6. (a) Other current liabilities includes provision amounting to Rs. 14,167.57 Lacs (till Previous Year Rs. 13,421.55 Lacs) made against special discount allowed to an overseas party (Refer Note No. 47(c)), pending receipt of approval of RBI.

(b) Balances of certain receivable, payable, (including of party stated in para (a) above) loans and advances are subject to confirmation and reconciliation.

7. During the current year, the Company has upward revised the useful life of certain class of fixed assets (plant & machinery) based on technical study and assessment done by an external technical valuer as well as based on internal assessment carried out by the management. The Company believes that the useful life as certified by external technical valuer best represent the period over which Company expects to use these assets. Had there not been any change in the useful lives of the certain plant & machinery, the depreciation for the year would have been higher by Rs. 2,487.70 Lacs.

8. During the current year, The Company has completed the process of Componentization of fixed assets as prescribed in part II of The Companies Act 2013. The impact of component accounting has taken place w.e.f 01st April 2015 and accordingly the depreciation expenses for the quarter and year ended 31^st March 2016 is higher by Rs. 483.45 Lacs. Further based on transitional provision provided in Note 7(b) of Schedule II, an amount of Rs.114.01 Lacs (net of deferred tax of Rs. 60.34 Lacs) on account of assets whose useful life is already exhausted as on 1st April 2015 have been adjusted to General Reserve during the year ended March 31^st, 2016.

9. Out of advance export proceeds which the Company has raised during the year of Rs. 72,641.64 Lacs (USD 114 Million) (note no 6) certain amount of long term debt and working capital has been paid/ reduced.

10. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortized over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 371.58 Lacs (Previous Year Rs. 983.59 Lacs) (net of depreciation Rs. 2.87 Lacs, Previous Year Rs. 10.23 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to Rs. Nil (Previous Year Rs. 237.22 Lacs) (Net of amortization of Rs. 158.59 Lacs, Previous Year Rs. 541.28 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference". As on 31^st March 2016, un-amortize amount of Rs. 4,127.32 Lacs and Rs. Nil (Previous Year Rs. 3,880.59 Lacs and Rs. 699.01 Lacs) is included in Plant & Machinery & CWIP respectively under Note 11 and in Foreign Currency Monetary Item Translation Difference Account under Note 3 respectively.

11. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

The above information''s regarding Micro, Small and medium Enterprise has been determined to the extent such parties have been identified of information available with the Company and as certified by the management.

12. (i) Catalyst is charged to the Statement of Profit & Loss as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(i) Specialized Computer Software is amortized over its useful life of 6 years on SLM basis.

13. Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand and other assets and also includes the following pre-operative expenses:

14. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited (IGLFL)

- Shakumbari Sugar and Allied Industries Limited (SSAIL)

- IGL CHEM International PTE. Ltd. (IGLCHEM)

- IGL CHEM International USA LLC (IGLCHEM US)

- IGL Infrastructure Private Limited.(IGL Infra) (Ceased on 14.09.2015)

B. Key Management Personnel

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Rakesh Bhartia (Chief Executive Officer)

- Anand Singhal (Chief Financial Officer)

- Lalit Sharma (Company Secretary)(Ceased on 31.05.2015)

- Kapil Bhalla (Company Secretary)(w.e.f. 24.06.2015)

C. Relatives of Key Management Personnel

- Pragya Bhartia

- Jayshree Bhartia

- Anand Singhal (HUF)

- Rakesh Bhartia (HUF)

- Smita Bhartia

- Alpna Sharma (Ceased on 31.05.2015)

- Geeta Bhalla (w.e.f. 24.06.2015)

D. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- Supreet Vyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

- IGL Infrastructure Private Limited.(IGL Infra) (w.e.f. 15.09.2015)

E. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL) in accordance with Companies Act 2013.

(iii) Detail of remuneration to KMP :-

a) Chairman & Managing Director - Rs. 151.70 Lacs (Previous Year Rs. 151.70 Lacs)

b) Executive Director - Rs. 69.52 Lacs (Previous Year Rs. 68.78 Lacs)

c) Chief Executive Officer - Rs. 185.88 Lacs (Previous Year Rs. 185.05 Lacs)

d) Chief Financial Officer - Rs. 52.74 Lacs (Previous Year Rs. 54.24 Lacs)

e) Company Secretary - Rs. 22.35 Lacs (Previous Year Rs. 24.11 Lacs)

(iv) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

- SSAIL Rs. 403.81 Lacs (Previous Year Rs. 615.73 Lacs).

b) Purchase of Services

- Polylink polymers (India) Ltd Rs. Nil (Previous Year Rs. 46.45 Lacs)

- Hindustan Wires Ltd Rs. 34.17 Lacs (Previous Year Rs. 33.71 Lacs)

c) Sales of Material are to:

- IGLCHEM, Singapore Rs. 5,249.09 Lacs (Previous Year Rs. 2,981.47 Lacs).

- IGLCHEM, USA Rs. 307.46 Lacs (Previous Year Rs. Nil).

- Hindustan Wires Limited. Rs. 244.15 Lacs (Previous Year Rs. 281.74 Lacs).

d) Slump Sale to IGL Infra Rs. Nil (Pervious Year Rs. 18,420.00 Lacs)

e) Inter Corporate Deposit / Other Deposits given includes two:

- IGL Infra Rs. 596.74 Lacs (Previous Year Rs. 15.00 Lacs)

- KIFTPL Rs. Nil (Previous Year Rs. 1,436.30 Lacs)

f) Inter Corporate Deposit / Others Deposits received back includes from:

- IGL Infra Rs. 611.74 Lacs (Previous Year Rs. Nil)

- IGLFL Rs. Nil (Previous Year Rs. 74 Lacs)

- KIFTPL Rs. Nil (Previous Year Rs. 1,436.30 Lacs)

g) Advance against Agreement includes to:

- Kashipur Holding Ltd Rs. 2,663.00 Lacs (Previous Year Rs. Nil)

h) Advance received back includes two:

- Kashipur Holding Ltd Rs. 2,663.00 Lacs (Previous Year Rs. Nil)

i) Interest Income includes from:

- SSAIL Rs. 135.03 Lacs (Previous Year Rs. 135.03 Lacs)

- IGLFL Rs. 1,941.08 Lacs (Previous Year Rs. 1,943.58 Lacs)

- Kashipur Holding Ltd Rs. 44.95 Lacs (Previous Year Rs. Nil)

- KIFTPL Rs. Nil (Previous Year Rs. 36.82 Lacs) j) Interest Waived off includes :

- SSAIL Rs. 135.03 Lacs (Previous Year Rs. 45.81 Lacs)

- IGLFL Rs.1,941.08 Lacs (Previous Year Rs. 1,943.58 Lacs) k) Advance given includes :

- SSAIL Rs. 152.90 Lacs (Previous Year Rs. Nil)

- KIFTPL Rs. 180.00 Lacs (Previous Year Rs. Nil) l) Advance Received back includes :

- SSAIL Rs. 152.90 Lacs (Previous Year Rs. Nil)

- KIFTPL Rs. 180.00 Lacs (Previous Year Rs. Nil) m) Security Deposit given to

- US Bhartia Rs. Nil (Previous Year Rs. 220.00 Lacs)

- IGL Infra Rs. 583.85 Lacs (Previous Year Rs. Nil) n) Investment In Equity Share

- KIFTPL Rs. Nil (Previous Year Rs. 2,440.00 Lacs)

- IGLCHEM US Rs. 64.17 Lacs (Previous Year Rs. 62.83 Lacs)

- IGL Infra Rs. Nil (Previous Year Rs. 5.00 Lacs) o) Sale of Investment in Equity share.

- Supreet Vyapaar Pvt Ltd Rs. 15.00 Lacs (Previous Year Rs. Nil)

- J Boseck & Co Pvt Ltd Rs. 57.00 Lacs (Previous Year Rs. Nil)

- Facit Commosales (P) Ltd Rs. 57.00 Lacs (Previous Year Rs. Nil)

- J. B. Commercial Co. (P) Ltd Rs. 57.00 Lacs (Previous Year Rs. Nil)

- Hindustan Wires Limited Rs. 57.00 Lacs (Previous Year Rs. Nil)

- Kashipur Holdings Limited Rs. 57.00 Lacs (Previous Year Rs. Nil) p) Reimbursement of expense made.

- Polylink Polymers (India) Ltd Rs. 47.83 Lacs (Previous Year Rs. 30.01 Lacs) q) Reimbursement of expense Received.

- IGL Infrastructure Rs. 580.57 Lacs (Previous Year Rs. Nil)

- KIFTPL Rs. 19.71 Lacs (Previous Year Rs. 6.85 Lacs)

r) Payment of Income received.

- IGL Infrastructure Rs. 357.56 Lacs (Previous Year Rs. Nil) s) Inter Corporate Deposit received includes from:

- Kashipur Holding Limited Rs. 700.00 Lacs (Previous Year Rs. 5,308.00 Lacs).

- J Boseck & Co. (P) Limited Rs. Nil (Previous Year Rs. 600.00 Lacs).

- Supreet Vypaar (P) Limited Rs. Nil (Previous Year Rs. 415.00 Lacs). t) Inter Corporate Deposit paid back includes to:

- Kashipur Holding Limited Rs. 700.00 Lacs (Previous Year Rs. 11,152.24 Lacs).

- Mayur Barter (P) Ltd. Rs. Nil (Previous Year Rs. 745.00 Lacs).

- Supreet Vyapaar (P) Ltd. Rs. Nil (Previous Year Rs. 646.00 Lacs).

- J Boseck & Co. (P) Limited Rs. Nil (Previous Year Rs. 600.00 Lacs).

- Facit Commosales (P) Ltd Rs. Nil (Previous Year Rs. 90.00 Lacs)

u) Interest Expense includes two:

- Kashipur Holding Limited Rs. 113.17 Lacs (Previous Year Rs. 294.86 Lacs).

- Supreet Vyapaar (P) Ltd. Rs. Nil (Previous Year Rs. 21.88 Lacs).

- Mayur Barter (P) Ltd. Rs. Nil (Previous Year Rs. 67.05 Lacs).

v) Rent & Maintenance Paid to :

- Polylink Polymers (India) Ltd. Rs. 13.67 Lacs (Previous Year Rs. 13.48 Lacs)

- IGL Infra Rs. 1,041.42 Lacs (Previous Year Rs. Nil)

- Kashipur Holding Limited Rs. 10.68 Lacs (Previous Year Rs. 7.69 Lacs) w) Vehicle Lease Paid to:

- Rakesh Bhartia HUF Rs. 1.06 Lacs(Previous Year Rs. 6.36 Lacs)

- Anand Singhal HUF Rs. 6.00 Lacs(Previous Year Rs. 4.80 Lacs)

- Alpna Sharma Rs. 0.50 Lacs (Previous Year Rs. 3.00 Lacs)

- Smita Bhartia Rs. 10.00 Lacs (Previous Year Rs. Nil)

- Geeta Bhalla Rs. 1.94 Lacs (Previous Year Rs. Nil)

x) ICD Receivable including interest includes:

- SSAIL Rs. 1,915.13 Lacs (Previous Year Rs. 1,915.13 Lacs). (Maximum balance outstanding during the year Rs. 1,915.13 Lacs, Previous Year Rs. 1,915.13 Lacs).

- IGLFL Rs. 14,649.64 Lacs (Previous Year Rs. 14,649.64 Lacs). (Maximum balance outstanding during the year Rs. 14,649.64 Lacs, Previous Year Rs. 14,649.64 Lacs).

y) Capital Advance receivable:

- Hindustan Wires Limited Rs. 1,000.00 Lacs (Previous Year Rs. 1,000.00 Lacs) z) Security Deposit receivable:

- Ajay Commercial Co. (P) Limited Rs. 240.00 Lacs (Previous Year Rs. 240.00 Lacs)

- J.B. Commercial Co. (P) Limited Rs. 240.00 Lacs (Previous Year Rs. 240.00 Lacs)

- IGL Infra Rs. 583.85 Lacs (Previous Year Rs. Nil)

- US Bhartia Rs. 500.00 Lacs (Previous Year Rs. 500.00 Lacs) aa) Others Receivable includes:

- IGL Infra Rs. Nil (Previous Year Rs. 18,420 Lacs). (Maximum balance outstanding during the year Rs. 18,420 Lacs, Previous Year Rs. 18,420 Lacs)

- SSAIL Rs. 8,453.81 Lacs (Previous Year Rs. 8,453.81 Lacs). (Maximum balance outstanding during the year Rs. 8,658.98 Lacs, Previous Year Rs. 8,453.81 Lacs).

- IGL CHEM Singapore Rs. 1,840.92 Lacs (Previous Year Rs. 477.75 Lacs). (Maximum balance outstanding during the year Rs. 3,569.69 Lacs, Previous Year Rs. 1,462.93 Lacs).

- IGL CHEM USA Rs. 228.03 Lacs (Previous Year Rs. 1.46 Lacs). (Maximum balance outstanding during the year Rs. 228.03 Lacs, Previous Year Rs. 1.46 Lacs).

15. In compliance with Accounting Standard 27 on Financial Reporting of Interest in Joint Ventures, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer:

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on Segment Reporting. (AS-17), taking into account the organizational structure as well as the differential risks and returns of these segments. The Company has identified three segments i.e. business Industrial chemical, Liquor and others which includes herbal products and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location)

In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in Accounting Standard 17: Segment Reporting.

Segment Composition

Industrial Chemicals Segment comprises Glycols, Specialty Chemicals, Natural Gum and other related goods etc.

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

''Others'' primarily includes Herbal Products and Rental.

16. Additional Information:

A. (a) Payment to Auditors (Exclusive of applicable service tax) (Rs. in Lacs)

Mar 31, 2015

1. SHARE CAPITAL

a) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of RS. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 (A) CONTINGENT LIABILITIES NOT PROVIDED FOR (AS CERTIFIED BY THE MANAGEMENT):-

(i) In respect of:- (RS. in Lacs)

Particulars As on As on March 31,2015 March 31,2014

Central Excise/ State Excise 22,644.34 19,592.03

Customs 1,025.70 860.10

Service Tax 70.76 66.46

Sales Tax 18.24 28.79

Other matters 958.75 2,021.94

Total 24,717.79 22,569.32

(ii) Bills discounted with banks RS. 3,829.60 Lacs (Previous Year : RS. 5,258.74 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company) amounting to RS. 12,045.43 Lacs (Previous Year 12,428.52). (Refer Note No. 32A(iii))

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to RS. 3,026.13 Lacs (Previous Year RS. 1,935.70 Lacs).

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses,will be fulfilled before expiry of the respective advance licenses. Accordingly and on "Going Concern Concept" basis there is no need to make any provision for custom duty saved.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of RS. 2,094.55 Lacs, Previous Year RS. 2,243.59 Lacs) are RS. 2,923.53 Lacs (Previous Year RS. 4,295.71 Lacs).

4. Employees Benefits:

a) Defined Benefit Plan:

The employees' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

5.In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon'ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon'ble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid of RS. 507.05 Lacs (Previous Year RS. 507.05 Lacs) (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

6. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/R.S. export outside India. The matter is finally disposed of by Hon'ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8, 2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and R.S. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon'ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of RS. 106.15 Lacs (Previous Year RS. 106.15 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand,under the head Short Term Loans and Advances.

7. (A) (i) Company has investment of RS. 5427.50 Lacs (Previous Year RS. 5,427.50 Lacs)in equity share capital and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985.

Considering the intrinsic value of the investee assets,long term nature of investment and direction issued by the Hon'ble Board for Industrial and Financial Reconstruction (BIFR)for preparation of revival scheme by the operating agency as appointed, which has been filed with BIFR on 11th January 2014 and also filed TEV (Technical Evaluation Study) with IDBI (Operating Agency) on 09th February, 2015, no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to RS. 1,915.13 Lacs (Previous Year RS. 1,834.83 Lacs) (including interest thereon) and advances of RS. 8,453.81 Lacs (Previous Year RS. 8,375.82 Lacs), where management is confident about recoverability/ realisability of the same. Accordingly, considering the facts as stated in Para (i) above, amount is considered good and fully recoverable and no provision there against is considered necessary by the management.

(iii) Central Bank of India (CBI) vide its letter dated 28.05.2014 had issued a notice under Section 13(2) of SARFAESI Act 2002 to SSAIL and IGL. The said notice was replied by SSAIL and IGL has challenged the legality of issuance of such notices. CBI, thereafter, on 11.09.2014 had issued another notice under Section 13(4) of SARFAESI on SSAIL and IGL, which has been challenged at DRT, Lucknow. As per the legal opinion, the notice is not valid since SSAIL is registered in BIFR as sick Company.

(B) (i) Short term loans and advances to related party includes Inter Corporate Deposit(ICD) amounting to RS. 14,649.64 Lacs (Previous Year RS. 14,723.64 Lacs) given to IGL Finance Ltd. (IGLFL),a 100% subsidiary of the company. IGLFL in turn had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL). NSEL has defaulted in settling the contracts on due dates and for which IGLFL has initiated legal and other action and in turn IGLFL did not pay due amount to the company. Accordingly considering the prudence no interest on above ICD has been accrued for the period from 01-09-2013 to 31-3-2015. However, considering the arrangement of merger of NSEL with Financial Technologies (India) Limited (FTIL) and other measure which have so far been taken for and pending before the Govt. and other authorities, the management is confident for recovery of dues from NSEL over a period of time.

(ii) Pending above no provision has been considered necessary at this stage by the company for exposure in IGLFL of RS. 14,774.64 Lacs (Previous Year RS. 14,848.64 Lacs) (including Investment in capital of RS. 125.00 Lacs), and the above is shown as good and fully recoverable by the management.

(C) Company has received letters dated 30th Oct 2014 and 05th May 2015 from National Stock Exchange of India (NSE), wherein the Company has been advised to reinstate its financial statement w.r.t. qualification raised for the years FY 2012-13 by the statutory auditor on investments and loans to SSAIL (Note no. 32 (A) (i) &(ii)) and suitably rectified the qualification raised for the year FY 2013-14 by the statutory auditor w.r.t. investment and loan to IGLFL (Note no. 32 (B)) respectively. For SSAIL, the Company has written letters to NSE for granting opportunity to represent the case and for IGLFL the Company has requested NSE to clarify the issue for effect to their directive.

(D) The Company has made equity investment of RS. 27.41 Lacs (Previous Year RS. 27.41 Lacs) in its wholly owned subsidiary IGL CHEM INTRENATIONAL PTE Limited, Singapore (IGL CHEM) and their outstanding in its account on account of receivables of amounting to RS. 477.75 Lacs (Previous Year RS. 530.31 Lacs). Due to losses & slowdown in business, net worth of IGL CHEM becomes negative. In view of strategic and long term in nature of investment, no provision against the same has been considered necessary by the management.

8. On receipt of approval of the shareholders and NOIDA Authority, during the year the Company had entered into a Business Transfer Agreement (BTA) with wholly owned subsidiary company, IGL Infrastructure Private Limited ('IGL Infra') (formed during the current year) for sale of its Rental Business Division on slump sale basis w.e.f. 30th Mar 2015 for consideration of RS. 18,420.00 Lacs, pending receipt of the final 'NOC' from 2 banks (approval since received). The consideration has been included under Short Term Loans & Advances Receivable. Profit on sale this amounting to RS. 5,194.26 Lacs is included under exceptional items. (Refer Note No. 46(d)).

9. On account of outbreak of fire in cooling tower at Kashipur plant during first quarter of the year, production and profitability was adversely affected. Accordingly, Company had filed a claim with the insurance company for the reinstatement of machinery as well as loss incurred due to business interruption amounting to RS. 622.63 Lacs & RS. 4,192.43 Lacs respectively as assessed by the management and an expert. Till date RS. 348.64 Lacs have been received from the insurance company for the reinstatement of machinery. On prudential basis, the company has accounted for RS. 3,029.63 Lacs (including reinstatement loss RS. 622.63 Lacs). An amount of RS. 2,680.99 Lacs being receivable from the Insurance Company is shown under short term loans & advances, which is considered good and fully recoverable by the management. Final adjustment will be done on settlement of the account by the Insurance Company.

10. During the year a wholly owned subsidiary have been formed to support its business activities in U.S.A IGL CHEM international USA LLC and till date company has made investment of RS. 62.83 Lacs in Share capital (Ref Note no 11).

11. Miscellaneous expenses under other expenses includes CSR expenses amounting to RS. 109.65 Lacs.

12. Other current liabilities includes provision amounting to RS. 13,421.55 Lacs (including for the Previous year RS. 8,369.43 Lacs) made against special discount allowed to an overseas party (Refer Note No. 46(c)), pending receipt of approval of RBI. Further, account/balance is subject to confirmation/reconciliation.

13. During the current year, the Company has computed the depreciation based on useful lives of its fixed assets as specified under Schedule II of the Companies Act, 2013. The carrying value of fixed assets which have completed their useful lives as per the Schedule II as on 1st April 2014 have been charged off against the balance in General Reserve of amounting to RS. 469.85 Lacs (net of deferred tax RS. 248.67 Lacs). Had there not been any change in the useful lives of the fixed assets, the depreciation for the year would have been higher by RS. 676.43 Lacs.

14. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortised over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to RS. 983.59 Lacs (Previous Year RS. 936.50 Lacs) (net of depreciation RS. 10.23 Lacs, Previous Year RS. 25.60 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to RS. 237.22 Lacs (Previous Year RS. 1,206.62 Lacs) (Net of amortization of RS. 541.28 Lacs, Previous Year RS. 655.34 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference". As on 31st March 2015, un-amortize amount of RS. 3,880.59 Lacs and RS. 699.01 Lacs (Previous Year RS. 3,080.06 Lacs and RS. 2,275.70 Lacs) is included in Plant & Machinery & CWIP under Note 10 and in Foreign Currency Monetary Item Translation Difference Account under Note 3 respectively.

15. (i) Catalyst is charged to the Statement of Profit & Lossas consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialized Computer Software is amortized over its useful life of 6 years on SLM basis.

16. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

* IGL Finance Limited (IGLFL)

* Shakumbari Sugar and Allied Industries Limited (SSAIL)

* IGLCHEM International PTE. Ltd. (IGLCHEM)

* IGLCHEM International USA LLC (IGLCHEM US) (incorporated on 09.07.2014)

* IGL Infrastructure Private Limited.(IGL Infra) (incorporated on 13.10.2014)

B. Key Management Personnel

* U. S. Bhartia (Chairman and Managing Director)

* M. K. Rao (Executive Director)

* Rakesh Bhartia (Chief Executive Officer) @

* Anand Singhal (Chief Financial Officer) @

* Lalit Sharma (Company Secretary) @

C. Relatives of Key Management Personnel

* Pragya Bhartia

* Jayshree Bhartia

* Anand Singhal (HUF) @

* Rakesh Bhartia (HUF) @

* Alpna Sharma @

D. Enterprises over which Key Management Personnel have significant influence:

* Ajay Commercial Co. (P) Ltd.

* J. B. Commercial Co. (P) Ltd.

* Kashipur Holdings Limited

* Polylink Polymers (India) Ltd.

* Hindustan Wires Limited

* Supreet Vyapaar (P) Ltd.

* Mayur Barter (P) Ltd.

* Facit Commosales (P) Ltd.

* J. Boseck & Co. (P) Ltd.

E. Joint Venture Enterprise

* Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL)

@ W.e.f 1st April 2014 in accordance with Companies Act, 2013.

(iii) Detail of remuneration to KMP :-

a) Chairman & Managing Director - RS. 151.70 Lacs (Previous Year RS. 295.83 Lacs)

b) Executive Director - RS. 68.78 Lacs (Previous Year RS. 69.08 Lacs)

c) Chief Executive Officer - RS. 185.05 Lacs

d) Chief Financial Officer - RS. 54.24 Lacs

e) Company Secretary - RS. 24.11 Lacs

(iv) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

* SSAIL RS. 615.73 Lacs (Previous Year RS. 2,406.03 Lacs).

b) Purchase of Services

* Polylink polymers RS. 46.45 Lacs (Previous Year RS. 38.41 Lacs)

* Hindustan Wires RS. 33.71 Lacs (Previous Year RS. Nil)

c) Sales of Material are to:

* IGLCHEM RS. 2,981.47 Lacs (Previous Year RS. 3,656.21 Lacs).

* Hindustan Wires Limited. RS. 281.74 Lacs (Previous Year RS. 293.76 Lacs).

d) Slump Sale to IGL Infra RS. 18,420.00 Lacs (Pervious Year RS. Nil)

e) Inter Corporate Deposit / Other Deposits given includes to:

* ICD given to KlFTPL RS. 1,436.30 Lacs (Previous Year RS. 300.00 Lacs)

f) Inter Corporate Deposit / Others Deposits received back includes from:

* IGLFL RS. 74.00 Lacs (Previous Year RS. 9,290.36 Lacs).

* ICD Received Back from KIFPTL RS. 1,436.30 Lacs (Previous Year RS. 300.00 Lacs)

g) Interest Income includes from:

* SSAIL RS. 135.03 Lacs (Previous Year RS. 135.03 Lacs).

* KIFTPL RS. 36.82 Lacs (Previous Year RS. 4.14 Lacs)

* IGLFL RS. 1,943.58 Lacs (Previous Year RS. 1,676.79 Lacs)

h) Interest Waived off includes from:

* SSAIL RS. 45.81 Lacs (Previous Year RS. Nil).

* IGLFL RS. 1,943.58 Lacs (Previous Year RS. 1,190.42 Lacs)

i) Security Deposit given to US Bhartia RS. 220.00 Lacs (Previous Year RS. 280.00 Lacs)

j) Investment In Equity Share

* KIFTPL RS. 2,440.00 Lacs (Previous Year RS. Nil)

* IGLCHEM Us RS. 62.83 Lacs (Previous Year RS. Nil)

* IGL Infra RS. 5.00 Lacs (Previous Year RS. Nil)

k) Reimbursement of expense made.

* Polylink Polymers (India) Limited RS. 30.01 Lacs (Previous Year RS. Nil)

* KIFTPL RS. 6.85 Lacs (Previous Year RS. 1.07 Lacs)

l) Inter Corporate Deposit received includes from:

* Kashipur Holding Limited RS. 5,308.00 Lacs (Previous Year RS. 2,530.00 Lacs).

* J Boseck & Co. (P) Limited RS. 600.00 Lacs (Previous Year RS. NIL).

* Supreet Vypaar (P) Limited RS. 415.00 Lacs (Previous Year RS. NIL).

m) Inter Corporate Deposit paid back includes to:

* Kashipur Holding Limited RS. 11,152.24 Lacs (Previous Year RS. 2,045.00 Lacs).

* Mayur Barter (P) Ltd. RS. 745.00 Lacs (Previous Year RS. 820.00 Lacs).

* Supreet Vyapaar (P) Ltd. RS. 646.00 Lacs (Previous Year RS. 547.00 Lacs).

* J Boseck & Co. (P) Limited RS. 600.00 Lacs (Previous Year RS. 600 Lacs).

* Facit Commosales (P) Ltd RS. 90.00 Lacs (Previous Year RS. 250 Lacs)

n) Interest Expense includes to:

* Kashipur Holding Limited RS. 294.86 Lacs (Previous Year RS. 549.78 Lacs).

* Supreet Vyapaar (P) Ltd. RS. 21.88 Lacs (Previous Year RS. 39.45 Lacs).

* Mayur Barter (P) Ltd. RS. 67.05 Lacs (Previous Year RS. 93.59 Lacs).

o) Rent Paid to :

* Polylink Polymers RS. 13.48 Lacs (Previous Year RS. 12.00 Lacs)

* Kashipur Holding Limited RS. 7.69 Lacs (Previous Year RS. 6.00 Lacs)

p) Vehicle Lease Paid to:

* Rakesh Bhartia HUF RS. 6.36 Lacs

* Anand Singhal HUF RS. 4.80 Lacs

* Alpna Sharma RS. 3.00 Lacs

q) Inter Corporate Deposit Payable (including interest) includes:

* Kashipur Holding Limited RS. Nil (Previous Year RS. 5,849.90 Lacs).

* Mayur Barter (P) Ltd. RS. Nil (Previous Year RS. 788.61 Lacs)

r) ICD Receivable (including interest) includes:

* Shakumbari Sugar and Allied Industries Limited RS. 1,915.13 Lacs (Previous Year RS. 1,834.83 Lacs). (Maximum balance outstanding during the year RS. 1,915.13 Lacs, Previous Year RS. 1,834.83 Lacs).

* IGL Finance Limited ' 14,649.64 Lacs (Previous Year RS. 14,723.64 Lacs). (Maximum balance outstanding during the year RS. 14,649.64 Lacs, Previous Year RS. 15,857.00 Lacs).

s) Capital Advance receivable:

* Hindustan Wires Limited RS. 1,000 Lacs (Previous Year RS. 1,000 Lacs)

t) Security Deposit receivable:

* Ajay Commercial Co. (P) Limited RS. 240 Lacs (Previous Year RS. 240 Lacs)

* J.B. Commercial Co. (P) Limited RS. 240 Lacs (Previous Year RS. 240 Lacs)

* US Bhartia RS. 500 Lacs (Previous Year RS. 280 Lacs)

u) Others Receivable includes:

* IGL Infra RS. 18,420 Lacs (Previous Year RS. Nil). (Maximum balance outstanding during the year RS. 18,420 Lacs, Previous Year RS. Nil)

* Shakumbari Sugar and Allied Industries Limited RS. 8,453.81 Lacs (Previous Year RS. 8,375.82 Lacs). (Maximum balance outstanding during the year RS. 8,453.81 Lacs, Previous Year RS. 10,135.18 Lacs).

* IGL CHEM International Pte. Ltd. RS. 477.75 Lacs (Previous Year RS. 530.31 Lacs). (Maximum balance outstanding during the year RS. 1,462.93 Lacs, Previous Year RS. 1,403.41 Lacs).

17. Exceptional item includes:

(a) A Provision of RS. 1,100.00 Lacs (Previous Year RS. Nil) has been created against foreign exchange contract related dispute and any liability that may arise therefrom; (b) Loss on account of exchange rate differences amounting to RS. 1,600.55 Lacs (net of gain of RS. 5,064.53 Lacs) [Previous Year RS. 10,803.19 Lacs (net of gain of RS. 11,336.93 Lacs)] for year ended 31st March 2015, on payment, settlement as well as reinstatement of short term foreign currency borrowings and other monetary assets/ liabilities; (c) Provision on account to special discount to an overseas overdue receivables amounting to RS. 5,052.12 Lacs (Previous Year RS. 8,369.43 Lacs), (Refer Note No. 37);(d) Profit on sale of 'Rental Business Division' amounting to RS. 5,194.26 Lacs (Previous Year RS. Nil) (Note No. 33); (e) Loss on sale of spent silver catalyst amounting to RS. 2,480.78 Lacs (Previous Year RS. Nil) and (f) Writing off of export incentive receivable of RS. 756.32 Lacs (Previous Year RS. Nil) which has been recognized in earlier years as per applicable government schemes, in view of remote chances of realization on account of steep fall in price in the international commodity market.

18. a) The Company had entered into a Joint Venture Agreement dated October 12,2011 ("JV Agreement") with Fourcee Infrastructure Equipments Pvt. Ltd. (FIEPL) for setting up a Private Freight Terminal and a company, Kashipur Infrastructure and Freight Terminal Pvt. Ltd. ("KIFTPL") was incorporated on 11th November 2011.Both JV partners have entered into a Joint Venture Termination Agreement for the termination of the JV. Gain on settlement with JV Partner is included under Other Income (Note No 20). Post settlement and purchase of full rights of erstwhile JV Partner (FIEPL) by the company, the Company has entered into a new Joint Venture Agreement with Apollo Logisolutions Limited ('ALS'). ALS as per the agreement has invested in 51% of paid up equity share capital of KIFTPL.

19. Additional Information:

(a) Exchange fluctuation gain of RS. Nil (Previous Year gain of RS. 0.62 Lacs), is net of loss of RS. Nil (Previous Year net of loss of RS. 0.20 Lacs).

(b) The Company uses derivative instruments for hedging possible losses and exchange fluctuation gain is RS. 923.67 Lacs net off loss of RS. 1,270.11 Lacs (Previous Year loss RS. 679.44 Lacs net off gain of RS. 5,253.99 Lacs) which is inclusive of loss of RS. 71.37 Lacs (Previous Year loss of RS. 343.04 Lacs) provision for mark to market gain/loss on account of all outstanding financial transactions as on 31st March 2015.

(c) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India 'Accounting for Derivatives' in March, 2008, the Company has provided for an amount of RS. 41.08 Lacs included in (c) (Previous Year RS. 143.63 Lacs) on outstanding contracts to the Statement of Profit & Loss, on account of foreign exchange derivative instruments.

20. Previous year's figures have been regrouped/ rearranged/ recast wherever considered necessary.

Mar 31, 2014

A) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Notes:

1 The Term Loans inter-se, are secured / to be secured by mortgage of all immovable properties of the Company both present and future and hypothecation of all movable properties of the Company (save and except book debts) including movable machinery, machinery spares, tools and accessories, both present and future subject to prior charges created and / or to be created in favour of the bankers of the Company on stocks, book debts and other specified movable properties for working capital requirements / Buyers Credit.

2 Rupee Term Loans includes loans from Banks of Rs. 32.13 Lacs (Previous Year Rs. 56.86 Lacs) and loans from others of Rs. 10.64 Lacs (Previous Year Rs. 45.52 Lacs) secured by hypothecation of Motor Vehicles purchased there under which is repayable on different dates. Further, Rupee Term Loans from others includes Rs. 708.75 Lacs (Previous Year Rs. 450.00 Lacs) secured against bank guarantee.

3 Term Loan from bank of Rs. 2,500.00 Lacs (Previous Year Rs. 5,000.00 Lacs), is repayable in 4 equal quarterly installments.

4 Term Loan from bank of Rs. 4,978.47 Lacs (Previous Year Rs. 4,978.47 lacs), is repayable in 11 equal quarterly installments of Rs. 417.00 Lacs and 1 installment of Rs. 391.47 lacs commencing from September 2014.

5 Term Loan from bank of Rs. 10,000.00 Lacs (Previous Year Rs. 7,500.00 Lacs), is repayable in 12 equal quarterly installments commencing from April 2015.

6 Term Loan from bank of Rs. 2,499.60 Lacs (Previous Year Rs. 2,500.00 Lacs), is repayable in 12 equal quarterly installments commencing from May 2015.

7 Term Loan from bank of Rs. 2,915.00 Lacs (Previous Year Rs. 4,583.00 Lacs), is repayable in 6 quarterly installments (4 installments of Rs. 417.00 Lacs each and remaining 2 installments of Rs. 623.50 Lacs each).

8 Term Loan from bank of Rs. 1,637.28 Lacs (Previous Year Rs. 3,329.86 Lacs) is repayable in 4 equal quarterly installments. It includes Foreign Currency Loan of Rs. 898.80 Lacs (USD 15.00 Lacs) (Previous Year Rs. 1,656.46 Lacs, USD 30.50 Lacs).

9 Term Loan from bank of Rs. 1,458.33 Lacs (Previous Year Rs. 2,291.67 Lacs), is repayable in 7 equal quarterly installments.

10 Term Loan from bank of Rs. 3,093.75 Lacs (Previous Year Rs. 4,218.75 Lacs), is repayable in 11 equal quarterly installments.

11 Term Loan from bank of Rs. 2,380.00 Lacs (Previous Year Rs. 2,809.00 lacs), is repayable in 66 equal monthly installments of Rs. 35.75 Lacs each and remaining 1 installments of Rs. 20.50 Lacs.

12 Term Loan from bank of Rs. 2,187.50 Lacs (Previous Year Rs. 2,625.00 Lacs), is repayable in 10 equal quarterly installments.

13 Term Loan from bank of Rs. 1,875.00 Lacs (Previous Year Rs. 2,500.00 Lacs), is repayable in 6 equal quarterly installments. 14 Term Loan from bank of Rs. 2,233.46 Lacs (Previous Year Rs. 2,436.50 Lacs), is repayable in 11 equal quarterly installments.

15 Term Loan from bank of Rs. 2,500.00 Lacs (Previous Year Rs. 5,000.00 Lacs), is repayable in 4 equal quarterly installments.

16 Term Loan from bank of Rs. 3,432.95 Lacs (Previous Year Rs. 3,982.96 Lacs), is repayable in 12 equal quarterly installments of Rs. 275.00 Lacs each and remaining 1 installments for Rs. 132.95 Lacs.

17 Term Loan from bank of Rs. 4,375.00 Lacs (Previous Year Rs. 5,000.00 Lacs), is repayable in 7 equal quarterly installments.

18 Term Loan from bank of Rs. 2,551.00 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments commencing from July 2015.

19 Term Loan from bank of Rs. 5,000.00 Lacs (Previous Year Nil), is repayable in 16 equal quarterly installments commencing from October 2014.

20 Term Loan from bank of Nil (Previous Year Rs. 187.50 Lacs).

21 Term Loan from bank of Rs. 3,761.38 Lacs (USD 62.77 Lacs) (Previous Year Rs. 4,924.43 Lacs, USD 90.67 Lacs), is repayable in 10 equal quarterly installments.

22 Term Loan from bank of Rs. 868.30 Lacs (USD 14.49 Lacs), (Previous Year Rs. 1,784.61 Lacs, USD 32.86 Lacs), is repayable in 3 installments of Rs. 250.00 Lacs each and remaining 1 installments for Rs. 118.30 Lacs.

23 Term Loan from bank of Rs. 9,315.15 Lacs (USD 155.46 Lacs) (Previous Year Rs. 10,802.26 Lacs, USD 198.90 Lacs), is repayable in 10 monthly installments (3 equal monthly installments of Rs. 583.33 Lacs, 3 equal monthly installments of Rs. 833.33 Lacs, 3 equal monthly installments of Rs. 856.67 Lacs and balance in last installment).

24 Term Loan from bank of Rs. 10,201.38 Lacs (USD 170.25 Lacs) (Previous Year Nil), is repayable in 37 monthly installments (33 equal monthly installments of Rs. 271.67 Lacs, 3 equal monthly installments of Rs. 345.00 Lacs and balance in last installment) from April 2015.

25 Term Loan from DBT Bihorama Rs. 450.00 Lacs (Previous Year Rs. 450.00 Lacs) is repayable in 9 equal half yearly installment.

26 Term Loan from DBT Bihorama Rs. 258.75 Lacs (Previous Year Nil) is repayable in 10 equal half yearly installment after completion of the project.

27 Loan from related parties of Rs. 6,910.24 Lacs (Previous Year Rs. 8,093.74 Lacs) is payable after a period of 3 years from the respective date of loans.

* Working Capital Loans from Banks are secured / to be secured by way of hypothecation of book debts and stocks including in-transit and other specified movable properties and second charge on all immovable properties of the Company. Buyers Credit facility is secured against non-fund based facility sanctioned to the Company.

Further Packing credit facility of Rs. 1,570.00 Lacs (Previous Year Nil) (included in working capital loans) are specifically secured by pledge of deposit.

Notes:

* (i) Addition to Plant and Machinery includes foreign exchange fluctuation difference arising under AS-11 (The effect of changes in foreign exchange rates) vide notification no. G.S.R 225 (E) dated 31st March, 2009 issued by Ministry of corporate affairs of Government of India as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011.

* (ii) Includes capitalisation of:

(a) Finance cost: Plant & Machiery Rs. 2,361.03 Lacs (Previous Year Rs. 584.51 Lacs).

(b) Exchange difference: Plant and Machinery Rs. 962.10 Lacs (Previous Year Rs. 419.89 Lacs).

* Gross block includes Rs. 130.39 Lacs (Previous Year Rs. 367.58 Lacs) secured by hypothecation against loan

* Prepaid expenses and loans to employees

*Includes loans to related parties Rs. 964.48 lacs (Previous year Rs. 964.48 lacs)

@ Includes Rs. 760.00 lacs (Previous Year Rs. 480.00 Lacs) security deposit to director, private companies in which director/directors of company is director and are also related parties.

* Pledged with bank/Governement Authorities as margin money/security against guarantees, packing credit facility and other borrowings maturing after 12 months

*Includes in transit Rs. 218.18 Lacs (Previous Year Nil)

*Includes in transit Rs. 356.15 Lacs (Previous Year Rs. 539.85 Lacs)

*Includes business advance of Rs. 8,376.16 Lacs (Previous Year Rs. 5,080.08 Lacs) to related parties and share application money paid Rs. 1462.59 Lacs (Previous Year Nil) to related party.

* Deposit with a related party. 27. (A) Contingent Liabilities not provided for (As Certified by the Management) : (i) In respect of:

Particulars As on As on March 31, 2014 March 31, 2014 Central Excise/ State Excise 19,592.03 10,945.93 Customs 860.10 261.93 Service Tax 66.46 69.02 Sales Tax 28.79 32.67 Other matters 2,021.94 2,012.26 Total 22,569.32 13,321.81

(ii) Bills discounted with Banks Rs. 5,258.74 Lacs (Previous Year: Rs. 15,826.08 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company):

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs. 1,935.70 Lacs (Previous Year Rs. 774.17 Lacs).

The management is of the view that considering the past export performanceand future prospects there is certainty that pending export obligation under advance licenses,will be fulfilled before expiry of the respective advance licenses. Accordingly and on"Going Concern Concept" basis there is no need to make any provision for custom duty saved.

28. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs. 2,243.59 Lacs, PreviousYear Rs. 1,345.05 Lacs) are Rs. 4,295.71 Lacs (Previous Year Rs. 7,238.67 Lacs).

29. During previous financial year, Company had issued and allotted 3079000 nos. fully paid up equity shares of Rs. 10 each at the rate of Rs. 138.56 (including premium of Rs. 128.56 per share) on preferential basis in term of the resolution passed in Annual General Meeting held on 15th September, 2012. The total receipts against this issue of Rs. 4,266.26 Lacs have been fully utilized for the purpose as stated in the resolution for which the issue was made.

30. Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 217.32 Lacs (Previous Year Rs. 239.09 Lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 381.66 Lacs, Previous Year Rs. 374.07 Lacs). Out of the above Rs. 57.98 Lacs (Previous Year Rs. 79.70 Lacs) either has repayment schedule beyond seven years (Maximum Balance outstanding during the year Rs. 78.44 Lacs, Previous Year Rs. 96.18 Lacs).

b) Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

32. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon''ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon''ble Supreme Court in favour of the Company. Accordingly, Companyhad filed an application for refund of amount paid of Rs. 507.05 Lacs (Previous Year Rs. 507.05 Lacs) (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

33. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. The matter is finally disposed of by Hon''ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8,2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and Rs. . The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon''ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of Rs. 106.15 Lacs (Previous Year Rs. 106.15 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand, in the books of account.

34. (A) (i) Company has investment of Rs. 5,427.50 Lacs (Previous Year Rs. 5,427.50 Lacs) in equity shares and 10%

cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded during the previous financial year and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985.

Considering the intrinsic value of the investee assets, long term nature of investment and direction issued by the Hon''ble Board for Industrial and Financial Reconstruction (BIFR) for preparation of revival scheme by the operating agency as appointed, which has been filed with BIFR on 11th January 2014, no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to Rs. 1,834.83 Lacs (Previous Year Rs. 1,713.30 Lacs) (including interest thereon) and advances of Rs. 8,375.82 Lacs (Previous Year Rs. 5,077.63 Lacs), where management is confident about recoverability/ realisability, of the same. Accordingly, considering the facts as stated in Para (i) above, amount is good and fully recoverable and no provision there against is considered necessary by the management.

(B) Short Term loans and advances to related party includes Inter Corporate Deposit amounting to Rs. 14,723.64 Lacs (Previous Year Rs. 1,960.00 Lacs) given to IGL Finance Ltd. (IGLFI), 100% subsidiary of the company. IGLFI in turn had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL).NSEL has defaulted in settling the contracts on due dates. However, considering the present state of affairs, action taken by the Govt. and other authorities, the management is confident of recovery of dues from NSEl over a period of time.

Accordingly, against total exposure in IGLFI of Rs. 14,848.64 Lacs (Previous Year Rs. 2,085.00 Lacs) (including Investment in capital of Rs. 125.00 Lacs), no provision has been considered necessary at this stage by the company and shown as good and fully recoverable.

35. The Company has challenged the legality and the validity of the financial derivative transaction dated January 15, 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Hon''ble High Court of Delhi (High Court) at New Delhi.Provision made in earlier year had been written back in the books of accounts in the year 2011-12 in view of the favorable opinion of the legal consultant and the fact that DRT and DRAT did not entertain application of the SCB and pending final decision of the High Court same has been considered under contingent liability.

36. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the"Foreign Currency Monetary Item Translation Difference" to be amortised over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 936.50 Lacs (Previous Year Rs. 378.92 Lacs) (net of depreciation Rs. 25.60 Lacs, Previous Year Rs. 40.97 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long term monetary items arising during the year amounting to Rs. 1,206.62 Lacs (Previous Year Rs. 824.43 Lacs) (Net of amortization of Rs. 655.34 Lacs, PreviousYear Rs. 636.14 Lacs) are adjusted to"Foreign Currency Monetary Item Translation Difference".

37. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

38. (i) Catalyst is charged to the Statement of Profit & Loss as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

(iii) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

* SSAIL Rs. 2,406.03 Lacs (Previous Year Rs. 1,914.08 Lacs).

b) Sales of Material are to:

* IGLCHEM Rs. 3,656.21 Lacs (Previous Year Rs. 4,640.34 Lacs).

* Hindustan Wires Limited. Rs. 293.76 Lacs (Previous Year Rs. 225.19 Lacs).

c) Interest Income includes from:

* SSAIL Rs. 135.03 Lacs (Previous Year Rs. 194.26 Lacs).

* IGLFI Rs. 486.37 Lacs (Previous Year Rs. 19.91Lacs).

d) Interest Expense includes to:

* Kashipur Holding Limited Rs. 549.78 Lacs (Previous Year Rs. 669.60 Lacs).

* Supreet Vyapaar (P) Ltd. Rs. 39.45 Lacs (Previous Year Rs. 82.21 Lacs).

* Mayur Barter (P) Ltd. Rs. 93.59 Lacs (Previous Year Rs. 161.74 Lacs).

e) Inter Corporate Deposit / Other Deposits given includes to:

* SSAIL Nil (Previous Year Rs. 4,398.00 Lacs)

* IGLFI Rs. 22,054.00 Lacs (Previous Year Rs. 2,660.00Lacs).

f) Inter Corporate Deposit / Others Deposits received back includes from:

* SSAIL Limited Nil (Previous Year Rs. 4,398.00 Lacs)

* IGLFI Rs. 9,290.36Lacs (Previous Year Rs. 700.00Lacs).

g) Capital advances given:

* Hindustan Wires Limited Rs. 1,000.00 Lacs (Previous year Nil)

h) Inter Corporate Deposit received includes from:

* Kashipur Holding Limited Rs. 2,530.00 Lacs (Previous Year Rs. 1,738.24 Lacs).

* Mayur Barter Rs. 300.00 Lacs (Previous Year Nil).

i) Inter Corporate Deposit paid back includes to:

* Kashipur Holding Limited Rs. 2,045.00 Lacs (Previous Year Rs. 4,040.00 Lacs).

* Mayur Barter (P) Ltd. Rs. 820.00 Lacs (Previous Year Rs. 1,113.00 Lacs).

* Supreet Vyapaar (P) Ltd. Rs. 547.00 Lacs (Previous Year Rs. 350.00 Lacs). j) Inter Corporate Deposit Payable (including interest)includes:

* Kashipur Holding Limited Rs. 5,849.90 Lacs (Previous Year Rs. 5,381.03 Lacs).

* Mayur Barter (P) Ltd. Rs. 788.61 Lacs (Previous Year Rs. 1,298.43 Lacs). k) ICD Receivable includes:

* Shakumbari Sugar and Allied Industries Limited Rs. 1,834.83 Lacs (Previous Year Rs. 1,713.30 Lacs). (Maximum balance outstanding during the year Rs. 1,834.83 Lacs, Previous Year Rs. 4,962.48 Lacs).

* IGL Finance Limited Rs. 14,723.64 Lacs (Previous Year Rs. 1,977.92 Lacs). (Maximum balance outstanding during the year Rs. 15,857.00 Lacs, Previous Year Rs. 1,977.92 Lacs).

l) Others Receivable includes:

* Shakumbari Sugar and Allied Industries Limited Rs. 8,375.82 Lacs (Previous Year Rs. 5,077.63 Lacs). (Maximum balance outstanding during the year Rs. 10,135.18 Lacs, Previous Year Rs. 8,878.31 Lacs).

* IGL CHEM International Pte. Ltd. Rs. 530.31 Lacs (Previous Year Rs. 675.56 Lacs). (Maximum balance outstanding during the year Rs. 1,403.41 Lacs, Previous Year Rs. 1,310.79 Lacs).

m) Capital advances receivable:

* Hindustan Wires Limited Rs. 1,000.00 Lacs (Previous year Nil)

43. Balances of certain debtors, creditors, other liabilities and loans and advances are in process of confirmation and/ or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

44. In previous year foreign exchange gain amounting to Rs. 312.63 Lacs, net of Loss of Rs. 4,361.19 Lacs has been included in the respective heads of accounts in the Statement of Profit & Loss. This has no impact on Profit / Loss for the year.

45. Exceptional item includes:

a) Loss on account of exchange rate differences amounting to Rs. 10,803.19 Lacs (net of gain of Rs. 11,336.93 Lacs) for year ended 31st March 2014, on payment, settlement as well as reinstatement of short term foreign currency borrowings and other monetary assets/ liabilities, and

b) Provision made, against amount receivable from an overseas debtors, on account of special discount due to steep fall in the natural gum prices and quality issues amounting to Rs. 8,369.43 Lacs, pending final reconciliation and necessary approval from Reserve Bank of India. The same has been included in other payables under "Other Current liabilities.

46. a) The Company had entered into a Joint Venture Agreement dated October 12, 2011 ("JV Agreement") with Fourcee Infrastructure Equipments Pvt. Ltd. (FIEPL) for setting up a Private Freight Terminal providing railway based logistic services and other facilities at Kashipur, Uttarakhand through Kashipur Infrastructure and Freight Terminal Pvt. Ltd. ("JV Company"). The Company and FIEPL equally hold 50% stake in the JV Company. The Company has invested Rs. 0.50 Lacs (Previous Year Rs. 0.50 Lacs) in JV Company till March 31, 2014 and in term of the JV agreement has also transferred 33.404 acres of land worth Rs. 1,462.59 Lacs in the JV Company towards its equity contribution as share application money, which is pending for allotment of equity shares. On 26th December, 2013, the Company has served a notice on the other partner for terminationof the JV agreement. Pursuant to the said notice, follow up actions, are being taken. On this account, the company does not expect any material impact on the state of affairs.

b) In compliance with Accounting Standard 27 on Financial Reporting of Interest in Joint Ventures, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer:

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on ''Segment Reporting'' (AS-17), taking into account the organisational structure as well as the differential risks and returns of these segments. The Company has identified three segments i.e. business Industrial chemical, Liquor and others which includes herbal products and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location) In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in ''Accounting Standard 17: Segment Reporting''.

Segment Composition

Industrial Chemicals Segment comprises Glycols, Specialty Chemicals, Natural Gum and other related goods etc.

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

Others'' primarily includes Herbal Products and Rental.

(b) Exchange fluctuation gain of Rs. 0.62 Lacs (Previous Year loss of Rs. 6,505.09 Lacs), is net of loss of Rs. 0.20 Lacs (Previous Year gain of Rs. 1,652.91 Lacs). (Also refer notes 44 and 45).

(c) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs. 679.44 Lacs net off gain of Rs. 5,253.99 Lacs (Previous Year Rs. 1,746.57 Lacs net off gain of Rs. 618.13 Lacs) which is inclusive of loss of Rs. 343.04 Lacs (Previous Year gain of Rs. 60.83 Lacs) provision for mark to market gain/loss on account of all outstanding financial transactions as on 31st March 2014.

(d) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India ''Accounting for Derivatives'' in March, 2008, the Company has provided for an amount of Rs. 143.63 Lacs included in (c) (Previous Year Rs. 6.58 Lacs) on outstanding contracts to the Statement of Profit & Loss, on account of foreign exchange derivative instruments.

Mar 31, 2013

1. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR (AS CERTIFIED BY THE MANAGEMENT) :

(i) In respect of:

(Rs. in Lacs)

Particulars As on As on March 31, 2013 March 31, 2012

Central Excise/ State Excise 10945.93 4,573.52

Customs 261.93 261.93

Service Tax 69.02 182.28

Sales Tax 32.67 31.84

Other matters 2,012.26 2,003.36

Total 13,321.81 7,052.93

(ii) Bills discounted with Banks Rs. 15,826.08 Lacs (Previous Year: Rs. 7,925.98 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company):

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs. 774.17 Lacs (Previous Year Rs. 1,617.19 Lacs).

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses,will be fulfilled before expiry of the respective advance licenses. Accordingly and on "Going Concern Concept" basis there is no need to make any provision for custom duty saved.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs.1,345.05 Lacs, Previous Year Rs. 4,390.11 Lacs) are Rs. 7,238.67 Lacs (Previous Year Rs. 9,075.68 Lacs).

3. During the year, Company has issued and allotted 3079000 nos. fully paid up equity shares of Rs. 10 each at the rate of Rs.138.56 (including premium of Rs.128.56 per share) on preferential basis in term of the resolution passed in Annual General Meeting held on 15th September, 2012. The total receipt against this issue of Rs. 4,266.26 Lacs have been fully utilized for the purpose as stated in the resolution

4. Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 239.09 Lacs (Previous Year Rs. 224.40 Lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 374.07 Lacs, Previous Year Rs. 353.14 Lacs). Out of the above Rs. 79.70 Lacs (Previous Year Rs. 59.47 Lacs) either has repayment schedule beyond seven years or there is no repayment schedule (Maximum Balance outstanding during the year Rs. 96.18 Lacs, Previous Year Rs. 75.39 Lacs).

5. Employees Benefits:

a) Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

b) Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

6. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon''ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon''ble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid of Rs. 507.05 Lacs (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

7. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. The matter is finally disposed of by Hon''ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8,2012, vide Uttarakhand Excise (Amendment) Act, 2012,Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and Rs. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon''ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of Rs.106.15 Lacs (Previous Year Rs. 68.05 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand, in the books of account.

8. (i) Company has investment of Rs. 5,427.50 Lacs (Previous Year Rs. 8,427.50 Lacs) in equity shares and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded during the year and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985. Considering the intrinsic value of the investee assets, long term nature of investment and direction issued by the Hon''ble Board for Industrial and Financial Reconstruction (BIFR) for preparation of revival scheme by the operating agency as appointed, no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to Rs. 1,713.30 Lacs (Previous Year Rs. 1,538.48 Lacs) (including interest thereon), where management is confident about recoverability/ reliability of the same (Maximum balance outstanding during the year Rs. 8,199.02 Lacs, Previous Year Rs. 10,704.45 Lacs). Accordingly considering the facts as stated in Para (i) above, amount is good and fully recoverable and no provision there against is necessary.

9. The Company has challenged the legality and the validity of the financial derivative transaction dated January 15, 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Hon''ble High Court of Delhi (High Court) at New Delhi.Provision made in earlier year had been written back in the books of accounts (read with Note. 47) in the year 2011-12 in view of the favorable opinion of the legal consultant and the fact that DRT and DRAT did not entertain application of the SCB and pending final decision of the High Court same has been considered under contingent liability.

10. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortised over the period of loan. Accordingly: (a) Exchange differences (gain) / loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 378.92 Lacs (Previous Year Rs. 809.65 Lacs) (net of depreciation Rs. 40.97 Lacs, Previous Year Rs. 101.83 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long- term monetary items arising during the year amounting to Rs. 824.43 Lacs (Previous Year Rs. 2,795.69 Lacs) (Net of amortization of Rs. 636.14 Lacs, Previous Year Rs. 621.78 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference".

11. (i) Catalyst is charged to the Statement of Profit & Loss as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

12. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited

- Shakumbari Sugar and Allied Industries Limited

- IGLCHEM International PTE. Ltd.

B. Key Management Personnel & their Relatives

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- SupreetVyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

D. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited

(ii) Detail of Transactions with related parties:

(iii) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

- Shakumbari Sugar and Allied Industries Limited Rs. 1,914.08 Lacs (Previous year Rs. 3,142.92 Lacs).

b) Sales of Material are to:

- IGL CHEM International Pte. Ltd. Rs. 4,640.34 Lacs(Previous Year Rs. 3,328.22 Lacs).

c) Inter Corporate Deposit / Other Deposits given includes to:

- Shakumbari Sugar and Allied Industries Limited Rs. 4,398.00 Lacs (Previous year Rs. 28,488.03 Lacs)

- Deposits with IGL Finance Ltd. Rs. 2,660.00 Lacs (Previous Year Nil).

d) Inter Corporate Deposit / Others Deposits received back includes from:

- Shakumbari Sugar and Allied Industries Limited Rs. 4,398.00 Lacs (Previous year Rs. 27,750.00 Lacs)

- IGL Finance Ltd. Rs. 700.00 Lacs (Previous Year Nil).

e) Inter Corporate Deposit received includes from:

- Kashipur Holding Limited Rs. 1,738.24 Lacs (Previous Year Rs. 6,676.00 Lacs).

- Mayur Barter (P) Ltd. Nil (Previous Year Rs. 2,000.00 Lacs).

f) Inter Corporate Deposit paid back includes to:

- Kashipur Holding Limited Rs. 4,040.00 Lacs (Previous Year Rs. 10.00 Lacs).

- Mayur Barter (P) Ltd. Rs. 1,113.00 Lacs (Previous Year Nil).

g) Inter Corporate Deposit Payable includes:

- Kashipur Holding Limited Rs. 5,359.24 Lacs (Previous Year Rs. 7,661.00 Lacs).

- Mayur Barter (P) Ltd. Rs. 1,265.00 Lacs (Previous Year Rs. 2,378 Lacs).

h) ICD Receivable includes:

- Shakumbari Sugar and Allied Industries Limited Rs. 1,713.30 Lacs (Previous year Rs. 1,538.48 Lacs).

i) Others Receivable includes:

- Shakumbari Sugar and Allied Industries Limited Rs. 5,077.63 Lacs (Previous year Rs. 2,849.65 Lacs).

- IGL CHEM International Pte. Ltd. Rs. 675.56 Lacs(Previous Year Rs. 750.11 Lacs).

j) Deposit with NBFC Receivable includes:

- IGL Finance Ltd. Rs. 1,977.92 Lacs (Previous Year Nil)

13. (a) Balances of certain debtors, creditors, other liabilities and loans and advances are in process of confirmation and/or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

(b) (i) Loans and advances includes advance for supplies Rs. 5,077.63 Lacs (Previous Year Rs. 2,849.65 Lacs) to Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 8,199.02 Lacs (Previous Year Rs. 3,200.00 Lacs).

(ii) Debtors include Rs.675.56 Lacs (Previous Year Rs. 750.11 Lacs) receivable from IGL Chem International PTE Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 1,310.79 Lacs (Previous Year Rs. 1,151.50 Lacs).

14. Foreign exchange gain amounting to Rs.312.63 Lacs (PreviousYear Rs. 32.07 Lacs), net of Loss of Rs. 4,361.19 Lacs (Previous Year Rs. 5,077.49 Lacs) has been included in the respective heads of accounts in the Statement of Profit & Loss. This has no impact on Profit / Loss for the year.

15. a) The Company has entered into a Joint Venture Agreement dated October 12, 2011 with Fourcee Infrastructure Equipments Pvt. Limited (FIEPL) for setting up a private freight terminal providing railway based logistic services and other facilities at Kashipur, Uttarakhand. The Company holds 50% stake in the Joint Venture ("the JV") and balance 50% is held by Fourcee Infrastructure Equipments Pvt. Limited. The Company has invested a total amount of Rs. 0.50 Lacs (Previous Year Rs. 0.50 Lacs) in Kashipur Infrastructure and Freight Terminal Pvt. Ltd. ("JV Company") till March 31, 2013 and also committed for total investment not exceeding of Rs. 1,490 Lacs which includes cost towards transfer of not exceeding 35 acres of land in favour of the JV.

b) In compliance with Accounting Standard 27 on Financial Reporting of Interest in Joint Ventures, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer:

16. Gain on write back of provision against dispute (amounting to Rs. 1,923.98 Lacs), other provisions/ creditors no longer required and exchange loss on reinstatement of outstanding foreign exchange contracts as stated in note 48(C) (d) have been included in respective head of accounts which in previous year was considered as exceptional item.

17. Previous year''s figures have been regrouped/ rearranged/ recast wherever considered necessary.

Mar 31, 2012

A) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* The Board of Directors, proposed a dividend of Rs. 3/- (Previous year Rs. 1.5/-) per equity share. The proposal is subject to approval in the ensuing Annual General Meeting. The total dividend appropriation for the year ended March 31, 2012 amounted to Rs. 972.18 Lacs (Previous Year Rs. 486.09 Lacs) including corporate dividend tax of Rs. 135.70 Lacs (Previous Year Rs. 67.85 Lacs)

Notes:

1 The Term Loans inter-se, are secured / to be secured by mortgage of all immovable properties of the Company both present and future and hypothecation of all movable properties of the Company (save and except book debts) including movable machinery, machinery spares, tools and accessories, both present and future subject to prior charges created and / or to be created in favour of the bankers of the Company on stocks, book debts and other specified movable properties for working capital requirements / Buyers Credit.

2 Rupee Term Loans includes loans from Banks of Rs. 33.20 Lacs (Previous Year Rs. 59.44 Lacs) and loans from others Rs. 110.09 Lacs (Previous Year Rs. 114.77 Lacs) secured by hypothecation of Motor Vehicles purchased there under which is repayable on different dates. Further, Rupee Term Loans from others includes Rs. 350.00 Lacs (Previous Year Rs. 150.00 Lacs) secured against bank guarantee.

3 Term Loan from bank outstanding as at 31.03.2012 Nil (Previous Year Rs. 250.00 Lacs).

4 Term Loan from bank of Rs. 300.00 Lacs (Previous Year Rs. 600.00 Lacs), is repayable in June,2012.

5 Term Loan from bank of Rs. 554.25 Lacs (USD 10.89 Lacs) (Previous Year Rs. 1,000.00 Lacs), is repayable in July, 2012.

6 Term Loan from bank of Rs. 1,625.00 Lacs (Previous Year Rs. 2,843.75 Lacs), is repayable in 4 equal quarterly installments.

7 Term Loan from bank of Rs. 1,360.00 Lacs (Previous Year Rs. 2,440.00 Lacs), is repayable in 4 equal quarterly installments of Rs. 270.00 Lacs and last quarter installment of Rs. 280.00 Lacs.

8 Term Loan from bank of Rs. 937.50 Lacs (Previous Year Rs. 1,687.50 Lacs), is repayable in 5 equal quarterly installments.

9 Term Loan from bank of Rs. 5,000.00 Lacs (Previous Year Nil), is repayable in 12 quarterly installments (2 installments for Rs. 208.50 Lacs each, 8 installments of Rs. 417.00 Lacs each and remaining 2 installments of Rs. 623.50 Lacs each).

10 Term Loan from bank of Rs. 2,400.00 Lacs (Previous Year Rs. 3,337.50 Lacs), is repayable in 8 equal quarterly installments.

11 Term Loan from bank of Rs. 2,939.28 Lacs (USD 57.77 Lacs), (Previous Year Rs. 3,625.00 Lacs), is repayable in 12 quarterly installments (11 installments for Rs. 255.59 Lacs each and remaining 1 installments for Rs. 127.79 Lacs).

12 Term Loan from bank of Rs. 3,200.00 Lacs (Previous Year Rs. 4400.00 Lacs ), is repayable in 8 quarterly installments (4 installment for Rs. 350.00 Lacs each and remaining 4 installments for Rs. 450.00 Lacs each).

13 Term Loan from bank of Rs. 1605.29. lacs (USD 31.55 Lacs) (Previous Year Rs. 3,750.00 Lacs), is repayable in 2 equal quarterly installments of Rs. 802.65 Lacs each).

14 Term Loan from bank of Rs. 3,550.00 Lacs (Previous Year Rs. 6,362.50 Lacs), is repayable in 4 equal quarterly installments.

15 Term Loan from bank of Rs. 5,010.64 Lacs (Previous Year Rs. 5,000.00 Lacs) is repayable in 12 equal quarterly installments.

16 Term Loan from bank of Rs. 2,003.30 Lacs (Previous Year Rs. 4,000 Lacs), is repayable in 4 equal quarterly installments of Rs. 500.00 Lacs each.

17 Term Loan from bank of Rs. 2,500 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments after moratorium period of 1 year from disbursement.

18 Term Loan from bank of Rs. 5,678.06 Lacs (USD 111.60 Lacs) (Previous Year Rs. 4,122.48 Lacs, USD 92.43 Lacs), is repayable in 16 equal quarterly installments of Rs. 354.88 Lacs each).

19 Term Loan from bank of Rs. 11,139.67 Lacs (USD 218.94 Lacs) (Previous Year Rs. 10,000 Lacs), is repayable in 45 monthly installments (3 equal installments of Rs. 34.35 Lacs, 12 equal installments of Rs. 40.07 Lacs, 24 equal installments of Rs. 286.22 Lacs, 5 equal installments of Rs. 629.68 Lacs and remaining Rs. 538.10 Lacs is payable on 31-12-2015).

20 Term Loan from bank of Rs. 4,500.00 Lacs (Previous Year Rs. 3,375.00 Lacs), is repayable in 16 equal quarterly installments of Rs. 281.25 Lacs each.

21 Term Loan from bank of Rs. 3,273.81 Lacs (Previous Year Rs. 1,500.00 lacs), is repayable in 91 equal monthly installments of Rs. 35.75 Lacs each and remaining 1 installments of Rs. 20.56 Lacs.

22 Term Loan from bank of Rs. 5,000 Lacs (Previous Year Nil), is repayable in 8 quarterly installments of Rs. 625.00 Lacs each with moratorium period of 12 months.

23 Term Loan from bank of Rs. 2,500.00 Lacs (Previous Year Nil), is repayable in 8 quarterly installments of Rs. 312.50 Lacs each . First installments will fall due in quarter ending 18 month from the date of first disbursement.

24 Term Loan from bank of Rs. 2,436.50 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments commencing after a moratorium of 2 years from the date of first disbursement.

25 Term Loan from bank of Rs. 2,625 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments commencing after a moratorium of 2 years from the date of first disbursement.

26 Term Loan from DBT Bihorama Rs. 350.00 Lacs (Previous Year Rs. 150.00 Lacs) is repayable in 10 equal half yearly installment after June 2012.

27 Term Loan from bank of Rs. 515.16 Lacs (USD 10.125 Lacs) (Previous Year Rs. 1,053.67 Lacs, UDS 23.63 Lacs), is repayable in 3 equal quarterly installments.

28 Term Loan from bank of Rs. 2,228.92 Lacs (USD 43.81 Lacs) (Previous Year Rs. 3,331.20 Lacs, USD 74.69 Lacs), is repayable in 7 quarterly equal installments of Rs. 318.42 Lacs.

29 Buyers Credit of Rs. 483.97 Lacs is secured against non fund based facility sanctioned to the Company and due for payment in March 2013.

30 Loan from related parties of Rs. 12,000.00 Lacs is payable on demand after a period of 3 years from the respective date of loans (Rs. 2,604.00 Lacs is repayable in 2013-14 and Rs. 9,396.00 Lacs is repayable in 2014-15).

31 Term loans from bank of Nil (Previous Year Rs. 2,212.98 Lacs, USD 48.19 Lacs).

Working Capital Loans from Banks are secured / to be secured by way of hypothecation of book debts and stocks including in-transit and second charge on all immovable properties of the Company. Buyers Credit facility is secured against non-fund based facility sanctioned to the Company. Further Packing credit facility of Rs. 15,115.27 Lacs (included in working capital loans) are also secured by pledge of deposit.

1) (A) Contingent Liabilities not provided for (As Certified by the Management) :-

(i) In respect of :- (Rs.in Lacs)

Particulars As on As on

31.03.2012 31.03.2011

Central Excise/ State Excise 4,573.52 5,633.08

Customs 261.93 350.12

Service Tax 182.28 213.80

Sales Tax 31.84 31.84

Other matters 2,003.36 79.38

7,052.93 6,308.22

(i) Claims against the Company not acknowledge as debts amounting to Nil (Previous Year: Rs. 303.24 Lacs).

(ii) Bills discounted with Banks Rs. 7,925.98 Lacs (Previous Year: Rs. 3,365.09 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company) amounting to Rs. 19,663.93 Lacs. (Previous Year Rs. 22,633.13 Lacs)

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs. 1,617.19 lacs (Previous year Rs. 1,413.79 Lacs).

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licenses. Accordingly and on "Going Concern Concept" basis there is no need to make any provision for custom duty saved.

2) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances ofRs. 4,390.11 Lacs, previous year Rs. 2,671.70 Lacs) are Rs. 9,075.68 Lacs (Previous year Rs. 3,581.21 Lacs).

3) Since it is not possible to determine with reasonable certainty/accuracy insurance claims and interest from customers, the same are continued to be accounted on settlement basis.

4) Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 224.40 Lacs (Previous year Rs. 261.37 Lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 353.14 Lacs, previous year Rs. 424.28 Lacs). Out of the above Rs. 59.47 Lacs (Previous Year Rs. 66.04 Lacs) either has repayment schedule beyond seven years or there is no repayment schedule (Maximum Balance outstanding during the year Rs. 75.39 Lacs, previous year Rs. 127.77 Lacs).

b) Defined Benefit Plan:

The employees' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

5) In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon'ble Supreme Court and on 18th October, 2006 the matter was finally decided by The Hon'ble Supreme Court in favour of the Company. Accordingly, Company has filed an application for refund of amount paid of Rs. 507.05 Lacs (shown as recoverable under the head Loans and Advances) with State Government of Uttarakhand.

6) In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. The matter is finally disposed of by Hon'ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Amount of Rs. 17.01 Lacs paid in earlier years along with Rs. 51.04 Lacs paid in current year are shown as recoverable from State Govt. of Uttarakhand in the books of account.

7) (i) Company has investment of Rs. 5,427.50 Lacs (Previous year Rs. 5,427.50 Lacs) in equity shares and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) where net worth as per the audited accounts for the year ended 31st March 2012 have been fully eroded.

(ii) Company has an investment of Rs. 27.41 Lacs (Previous year Rs. 27.41 Lacs) in equity share capital of subsidiary company IGL Chem International PTE. LTD. (IGL CIP) where book value is negative / lower.

Considering the intrinsic value of the investee assets and long term nature of investment made, no provision at this stage is considered necessary by the management for investments in above stated subsidiaries namely SSAIL and IGL CIP

(iii) Loans and advances includes Inter corporate deposit to SSAIL amounting to Rs. 1,546.67 lacs (Previous year Rs. 463.39 lacs) (including interest thereon), where management is confident about recoverability/ reliability of the same. (Maximum balance outstanding during the year Rs. 10,704.45 Lacs, previous year Rs. 4,514.28 Lacs)

8) The Company has challenged the legality and the validity of the financial derivative transaction dated 15th January 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Hon'ble High Court of Delhi (High Court) at New Delhi. Provision made in earlier year has been written back in the books of accounts in view of the favorable opinion of the legal consultant and order of DRT and DRAT not to entertain application of the SCB, pending final decision of the High Court same has been shown under contingent liability.

9) In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortized over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 809.65 Lacs (Previous year Rs. 220.02 Lacs) (net of depreciation Rs. 101.83 Lacs, previous year Rs. 21.34 Lacs.) adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to Rs. 2795.69 Lacs (Previous year Rs. 1.13 Lacs) (Net of amortization Rs. 621.78 Lacs, previous year Rs. 1.13 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference".

10) (i) Catalyst is charged to the Profit & Loss Account as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialized Computer Software is amortized over its useful life of 6 years on SLM basis.

11) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand, technical know-how fees, advances paid for plant & machinery and other assets and also includes the following pre-operative expenses:

12) Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited

- Shakumbari Sugar and Allied Industries Limited

- IGL CHEM International Pte. Ltd.

B. Key Management Personnel & their Relatives

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- Supreet Vyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

D. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited

13) (a) Balances of certain Debtors, creditors, other liabilities and loans and advances are in process of confirmation and/or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

(b) i) Loans and advances includes advance for supplies Rs. 2,849.65 Lacs (Previous year Rs. 2,333.70 Lacs) to Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 3,200.00 Lacs (Previous year Rs. 2,700.26 Lacs).

(ii) Debtors includes Rs. 750.11 Lacs (Previous year Rs. 344.40 Lacs) receivable from IGL Chem International Pte Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 1,151.50 Lacs (Previous year Rs. 447.62 Lacs).

14) Foreign exchange gain amounting to Rs. 32.07 Lacs (previous year Rs. 1,121.50 Lacs), net of Loss of Rs. 5,077.49 Lacs (previous year Rs. 2,663.77 Lacs) has been included in the respective heads of accounts in the Profit Loss Account. This has no impact on Profit / Loss for the year.

15) The Company has entered into a Joint Venture Agreement dated October 12, 2011 with Fourcee Infrastructure Equipments Pvt. Limited (FIEPL) for setting up a private freight terminal providing railway based logistic services and other facilities at Kashipur, Uttarakhand. The Company holds 50% stake in the Joint Venture and 50% in held by Fourcee Infrastructure Equipments Pvt. Limited. The Company has invested a total amount of Rs. 0.50 lacs till March 31, 2012 and also committed for additional investment of Rs. 1700 lacs.

16) Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL), is a Joint Venture wherein the Company holds 50% stake. KIFTPL has not started any commercial activities till date. Pending approval and adoption of audited financial statements for the year ended 31st March 2012 by the Board of Directors of KIFTPL disclosures in compliance with Accounting Standard 27 on "Financial Reporting of Interest in Joint Ventures", have not been made. The amount involved is not material.

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on 'Segment Reporting' (AS-17), taking into account the organizational structure as well as the differential risks and returns of these segments. The Company has identified three segments i.e. business Industrial chemical, Liquor and others which includes herbal products and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location)

In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in 'Accounting Standard 17: Segment Reporting'.

Segment Composition

Industrial Chemicals Segment comprises Glycols, Specialty Chemicals, Natural Gum and other related goods etc.

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

'Others' primarily includes Herbal Products and Rental.

17) Exceptional items represents gain on write back of provision against disputed amount (as stated in note 35 above amounting to Rs. 1,923.98 lacs) and other provisions/ creditors no longer required net of exchange loss on reinstatement of outstanding foreign exchange contracts. (Refer note 49(C)(d)).

(b) Exchange fluctuation loss of Rs. 7,652.72 Lacs (Previous year gain of Rs. 1295.17 Lacs), is net of gain of Rs. 4,366.14 Lacs (Previous year loss of Rs. 1,256.34 Lacs).

(c) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs. 1,373.53 Lacs net off gain of Rs. 1,361.20 Lacs (Previous year gain of Rs. 649.17 Lacs net of loss of Rs. 232.90 Lacs) which is inclusive of loss of Rs. 2,473.14 Lacs (Previous year loss of Rs. 202.90 Lacs) provision for mark to market loss on account of all outstanding financial transactions as on 31st March 2012.

(d) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India 'Accounting for Derivatives' in March, 2008, the Company has provided an amount of Rs. 2,473.14 Lacs included in (a) (Previous year Rs. 202.90 Lacs) on outstanding contracts to the profit & loss account, account of foreign exchange derivative instruments and the same shown as part of exceptional item.

18) During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. Thus previous year figures have been reclassified/ recanted suitably. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements except for presentation and disclosures, wherever required.

Mar 31, 2011

1) (A) Contingent Liabilities not provided for ( As Certified by the Management ) :-

(i) In respect of:- (Rs. in lacs) Particulars As on As on 31.03.2011 31.03.2010

Central Excise/State Excise 5,633.08 743.48

Customs 350.12 233.35

Service Tax & Others 293.18 164.85

Sales Tax 25.70

(ii) Claims against the Company not acknowledge as debts amounting to Rs. 303.24 lacs (Previous Year Rs. 320.31 lacs).

(iii) Bills discounted with Banks Rs. 3,365.09 lacs (Previous Year Rs. 2,757.09 lacs).

(iv) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company) amounting to Rs. 22,633.13 lacs. (Previous Year Rs. 22,513.00 lacs)

(B) Custom duty saved amounting to Rs.1,283.43 lacs on raw material consumed (Previous Year Rs. 295.92) on import of raw material under Advance License, pending fulfillment of export obligation and to that extent profit is stated higher.

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licenses. Accordingly and on ÃGoing Concern ConceptÃ basis there is no need to make any provision for custom duty saved.

2) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs.1160.62 lacs, previous year Rs. 1,368.52 lacs) are Rs. 3,510.47 lacs (Previous year Rs.1,789.73 lacs).

3) Since it is not possible to determine with reasonable certainty/accuracy insurance claims and interest from customers, the same are continued to be accounted on settlement basis.

4) Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 261.37 lacs (Previous year Rs. 154.58 lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 424.28 lacs, previous year Rs. 236.45 lacs). Out of the above Rs. 66.04 lacs either has repayment schedule beyond seven years or there is no repayment schedule (Maximum Balance outstanding during the year Rs 127.77 lacs, previous year Rs.130.24 lacs).

5) Employees Benifits:

b) Defined Benefit Plan:

The employeesÃ gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

6) In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the HonÃble Supreme Court and on 18th October, 2006 the matter was finally decided by The HonÃble Supreme Court in favour of the Company. Accordingly, Company has filed an application for refund of amount paid of Rs.507.05 lacs (shown as recoverable under the head Loans and Advances) with State Government of Uttarakhand.

7) In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. On the application of the Company the HonÃble High Court of Uttarakhand vide its Order dated 13th November, 2007 has granted stay on charging of Export Pass Fees till further Order. An amount of Rs. 44.53 lacs paid in earlier years is shown as recoverable from State Govt. of Uttarakhand in the books of account.

8) (i) Company has investment of Rs. 4,427.50 lacs (Previous year Rs. 2,827.50 lacs) and Rs.1,000.00 lacs (Previous year Rs.1,000.00 Lacs) in equity share capital and 10% cumulative redeemable preference share capital respectively in its subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) where book value is lower than carrying to cost. During previous year the HonÃble High Court of Allahabad vide its order dated 24thJuly 2009 has approved the reduction of its paid up equity share capital. With such reduction in par and fully paid up value of equity share of Rs.10 each reduced to Rs.5 each, 2 (two) fully paid up equity shares of Rs.5 each have been consolidated into 1 (one) equity share of Rs.10 each fully paid up.

(ii) Company has an investment of Rs.27.41 lacs (Previous year Rs.27.41 lacs) in equity share capital of subsidiary company IGL Chem International PTE. LTD. (IGL CIP) where book value is negative / lower. Considering the intrinsic value of the investee assets and long term nature of investment made, no provision at this stage is considered necessary by the management for investments in above stated subsidiaries namely SSAIL and IGL CIP.

(iii) Loans and advances includes short term loan to SSAIL amounting to Rs. 463.39 lacs (Including interest accrued thereon) (Previous Year Nil), where management is confident about recoverability/realisability of the same (Maximum balance outstanding during the year Rs. 4,514.28 lacs (Previous year Rs.1,200 lacs).

9) The Company has challenged the legality and the validity of the financial derivative transaction dated 15th January 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the HonÃble High Court of Delhi at New Delhi. Accordingly, of the total provision considered in in books on prudence basis of Rs.1,923.98 lacs (Previous Rs.1,923.98 lacs) excluding interest, if any, made against the said financial transaction dated 15th January 2008 is disputed and is subject to the final outcome of the aforesaid court proceedings.

10) In accordance with Companies (Accounting Standards) Amendment Rules 2009, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the ÃForeign Currency Monetary Item Translation DifferenceÃ. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the financial year 2010-11 amounting to Rs. 220.02 lacs (Previous year Rs. (1,042.85) lacs) (net of depreciation Rs. 21.34 lacs, previous year Rs. 89.10 lacs) adjusted to the cost of fixed assets, and (b) relating to Other long-term monetary items

arising during the year amounting to Rs. 2.91 lacs (Previous year Rs. (47.58) lacs) (Net of amortization Rs.1.13 lacs, previous year Rs. 38.38 lacs) are adjusted to ÃForeign Currency Monetary Item Translation DifferenceÃ.

11) Exceptional items represents exchange (gain)/loss Nil (Previous year Rs. (1,626.58) lacs (net)) on reinstatement of outstanding foreign exchange contracts.

12) As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

The above informationÃs regarding Micro, Small and medium Enterprise has been determined to the extent such parties have been identified of information available with the Company.

13) (i) Catalyst is charged to the Profit & Loss Account as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

14) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand, technical know-how fees, advances paid for plant & machinery and other assets and also includes the following pre-operative expenses:

15) Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited

- Shakumbari Sugar and Allied Industries Limited

- IGL CHEM International Pte. Ltd.

B. Key Management Personnel & their Relatives

- U. S. Bhartia

- M. K. Rao

- Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

16) (a) Revenue expenditure on Research & Development of Rs. 220.12 lacs (Previous year Rs.193.64 lacs) incurred during the year has been charged to profit and loss account.

(b) Based on opinion of an expert, service tax credit setoffs of Rs. 591.07 lacs not taken in earlier years has now been taken. The same has been included in the respective heads of accounts in the Profit Loss Account.

17) (a) Balances of certain Debtors, creditors, other liabilities and loans and advances are in process of confirmation and/or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

(b) (i) Loans and advances includes advance for supplies Rs. 2,333.70 (Previous year Nil) to Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 2,700.26 lacs (Previous year Rs. 2,400.00 lacs).

(ii) Debtors includes Rs. 344.40 lacs (Previous year Rs. 192.16 lacs) receivable from IGL Chem International Pte Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 447.62 lacs (Previous year Rs. 445.94 lacs)

18) Foreign exchange gain amounting to Rs.1,121.50 lacs (previous year Rs. 3,579.23 lacs), net of Loss of Rs. 2,663.77 lacs (previous year Rs. 784.38 lacs) has been included in the respective heads of accounts in the Profit Loss Account. This has no impact on Profit / Loss for the year.

19) Segment Information:

A. Information about Business Segments (Primary Segments):

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on ÃSegment ReportingÃ (AS-17), taking into account the organisational structure as well as the differential risks and returns of these segments. The Company has identified three segments i.e. business chemical, liquor and others which includes guar gum, software development and Ennature Bio-pharma and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location)

In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in ÃAccounting Standard 17: Segment ReportingÃ.

Segment Composition

Chemicals Segment comprises manufacture and sale of Ethylene Glycol, Di-ethylene Glycol, Heavy Glycol and EO Derivatives etc.

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

ÃOthersÃ primarily include Guar Gum, Software development and Ennature Bio-pharma.

20) Previous yearÃs figures have been regrouped / rearranged / recast wherever considered necessary.

21) Additional Information:

B. Managerial Remuneration to Chairman and Managing Director (CMD) and Executive Director:

Note:

(a) Liability of gratuity has not been ascertained separately, since funded through group policy. Leave encashment liability cannot be ascertained separately, hence not included in above.

(b) Shareholders at their meeting held on 24th April, 2009 have approved revision in the remuneration of CMD w.e.f 1st April, 2008, however pending Central Government approval, remuneration of CMD for the period 1st April 2008 to 31st March 2010 was provided in respective year based on Schedule XIII of the CompanyÃs Act 1956. Accordingly, additional amount of Rs.547.06 lacs (in terms of resolution passed by the shareholders and on receipt of Central Govt. approval) in respect of earlier year have been accounted for during the year.

(c) In view of the inadequacy of profit as per section 198 of the CompanyÃs Act 1956 no commission is payable.

C. Capacities and Production

Notes:

* As certified by the Management and relied upon by the auditors, being a technical matter. @@ Standard Capacity

** Net of captive consumption.

# Production as received in bonded tank farm.

@ Under the Industrial Policy Statement dated 24th July 1991 and the notifications issued thereunder, no licensing is required for these products.

## Net of Evaporation loss.

*** Including CO2 received from Kashipur Nil (Previous year 354 MT) net of transit loss Nil (Previous year 6 MT)

E. Commodity and Foreign Exchange Derivatives and exposures (as certified by the management).

b) Commodity derivative and exchange fluctuation gain of Rs. 941.71 lacs (Previous year Rs. 3256.90), is net of loss of Rs.1,437.13 lacs (Previous year Rs. 605.47 lacs).

c) The Company uses derivative instruments for hedging possible losses and exchange fluctuation gain is Rs. 649.17 lacs net off loss of Rs. 232.90 lacs (Previous year loss of Rs. 670.02 lacs net of gain Rs.1223.67 lacs) which is inclusive of loss of Rs. 202.90 lacs (Previous year loss of Rs. 416.67 lacs) provision for mark to market loss on account of all outstanding financial transactions as on 31st March 2011.

d) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India ÃAccounting for DerivativesÃ in March, 2008, the Company has provided an amount of Rs. 597.46 lacs included in (a) (Previous year Rs.416.67 lacs) on outstanding contracts to the profit & loss account, account of commodity and foreign exchange derivative instruments.

H. In accordance with the notification no. S.O. 301 (E), issued by the Ministry of Corporate Affairs, dated 8th Feb 2011, the Company has availed exemptions from disclosure requirements of paragraphs 3(i)(a), 3(ii)(a) and 3(ii)(b) of Part II of Schedule VI.

I. Remittance in Foreign Currency on Dividend Account

* Excluding for those shareholders for whom dividend has been credited to their NRE Accounts in India.

Mar 31, 2010

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licences. Company has been advised that considering this and "Going Concern Concept" basis, there is no need make any provision for customs duty saved.

2) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs. 1368.52 Lacs (Previous Year Rs. 4058.40 Lacs)) are Rs. 1789.73 Lacs (Previous Year: Rs.6532.38 Lacs).

3) Since it is not possible to determine with reasonable certainty/accuracy insurance claims and interest from customers, the same are continued to be accounted on settlement basis.

4) Advances recoverable in cash or kind include loans and advances in the nature of Loan recoverable from the employees where there is:

No interest or interest is below Section 372A of the Companies Act Rs. 154.58 Lacs (Previous Year Rs. 184.74 Lacs) Maximum Balance outstanding during the year Rs. 236.45 Lacs (Previous Year Rs.282.96 Lacs).

Repayment schedule is beyond seven years or no repayment schedule Rs. 108.69 Lacs (Previous Year Rs. 104.69 Lacs). Maximum Balance outstanding during the year Rs. 130.24 Lacs (Previous Year Rs. 122.00 Lacs).

b) Defined Benefit Plan:

The employees gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

6) In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of licence fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Honble Supreme Court and on 18th October, 2006 the matter was finally decided by The Honble Supreme Court in favour of the Company. Accordingly, Company has filed an application for refund of amount paid Rs.507.05 lacs (shown as recoverable under the head Loans & Advances) with State Government of Uttarakhand.

7) In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. On the application of the Company the Honble High Court of Uttarakhand vide its Order dated 13th November, 2007 has granted stay on charging of Export Pass Fees till further Order. An amount of Rs.44.53 Lacs paid in earlier years is shown as recoverable from State Govt, of Uttarakhand in the books of account.

8) Company has investment in a Subsidiary Company, viz, M/s IGL Finance Limited amounting to Rs.75.00 Lacs (net of provision for diminution of Rs.425.00 Lacs). During the year, Honble High Court of Nainital vide its order dated 11th May, 2009 has approved reduction in its paid-up Equity Share capital. With such reduction, par and fully paid up value of equity share of Rs.10 each was reduced to Rs.2 each and 5 (five) fully paid up equity shares of Rs.2 each have been consolidated into 1(one) equity share of Rs.10 each fully paid up.

9) (i) Company has investment of Rs.2827.50 Lacs and Rs. 1000.00 Lacs in equity share capital and 10%

cumulative redeemable preference share capital respectively in its Subsidiary Company Shakumbari Sugar and Allied Industries Limited (SSAIL) where book value is lower than carrying cost. During the year the

Honble High Court of Allahabad vide its order dated 24"July,2009 has approved the reduction in its paid- up Equity share capital. With such reduction in par and fully paid up value of equity share of Rs.10 each reduced to Rs.5 each, 2 (two) fully paid up equity shares of Rs 5 each have been consolidated into 1 (one) equity share of Rs.10 each fully paid up.

(ii) Company has an investment of Rs.27.41 Lacs in equity shares of subsidiary IGL Chem International PTE. LTD. (IGL CIP ) where book value is negative / lower.

Considering the long term in nature and intrinsic value of the investee assets no provision at this stage is considered necessary by the management for investment in above stated subsidiaries namely SSAIL and IGLCIP.

10) The Company has challenged the legality and the validity of the financial derivative transaction dated 15h January 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Honble High Court of Delhi at New Delhi Accordingly, of the total provision considered in books on prudence basis of Rs 1923.98 Lacs (Previous year Rs.4169 56 Lacs) excluding interest, if any, made against the said financial transaction dated 15" January 2008 is disputed and is subject to the final outcome of the aforesaid court proceedings

11) In accordance with Companies (Accounting Standards) Amendment Rules, 2009, the Company continued its policy, as exercised in previous year, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference". Accordingly: (a) Exchange differences relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the financial year 2009-10 amounting to Rs.1042.85 Lacs (Gain) ( Previous year Rs.3900.43 Lacs (Loss) ) (net of depreciation Rs.(89.10) Lacs) ( Previous year Rs 188.28 Lacs.) are adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to Rs.47.58 Lacs (Gain) (Previous year Rs.267.26 Lacs (Loss) [Net of amortization Rs (38 38) Lacs (Previous year Rs 63.11 Lacs)] are adjusted to "Foreign Currency Monetary Item Translation Difference"

12) Exceptional items represent exchange (gam) / loss of Rs.( 1626.58) Lacs (net) (Previous year Rs.4743 67 Lacs (net)) on reinstatement of outstanding foreign exchange contracts

13) As required by section 22 of The Micro, Small and Medium Enterprises Development Act 2006 the following information is disclosed:

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

14) (i) Catalyst is charged to the Profit & Loss Account as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years ). (ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

15) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand, technical know-how fees, advances paid for plant & machinery and other assets and also includes the following pre-operative expenses:

16) Related Parties Disclosure:

(As identified by the management)

(i) Relationships:

A. Subsidiary Companies

IGL Finance Limited

Shakumbari Sugar and Allied Industries Limited

- IGL CHEM International Pte. Ltd.

B. Key Management Personnel & their Relatives

U. S. Bhartia

- M. K. Rao Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd. Kashipur Holdings Limited Polylink Polymers (India) Ltd. Hindustan Wires Limited

19) Revenue expenditure on Research & Development of Rs. 193.64 Lacs (Previous year: Rs. 157.41 Lacs) incurred during the year has been charged to profit and loss account.

20) (a) Balances of certain Debtors, creditors, other liabilities and loans and advances are in process of confirmation and / or reconciliation. Management is confident that on final reconciliation / confirmation of these, there will not be any material adjustment.

(b) (i) Loans and advances include Rs. Nil receivable from Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (maximum balance outstanding during the year Rs 2400 lacs).

(ii) Debtors include Rs. 192.16 lacs receivable from IGL Chem International Pte Ltd. (Subsidiary Company) (maximum balance outstanding during the year Rs 445.94 lacs).

21) Foreign exchange gain (net of Loss Rs.784.38 Lacs) amounting to Rs 3579.23 Lacs(previous year loss {net of gain Rs.1353 lacs} amounting to Rs.1802 Lacs) has been included in the respective heads of accounts in the Profit Loss Account. This has no impact on Profit / Loss for the year.

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on Segment Reporting (AS-17), taking into account the organisational structure as well as the differential risks and returns of these segments. The company has identified three segments i.e. business chemical, liquor and others which includes guar gum, software development and Ennature Bio-pharma and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location)

In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in Accounting Standard 17: Segment Reporting.

Segment Composition

Chemicals Segment comprises manufacture and sale of Ethylene Glycol. Di-ethylene Glycol. Heavy Glycol and EO Derivatives

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

Others primarily include Guai Gum, Software development and Ennature Bio-pharma.

23) Previous years figures have been regrouped / rearranged / recast wherever considered necessary.

24) Additional Information:

Note:

(a) Liability of gratuity has not been ascertained separately, since funded through group policy. Leave encashment liability can not be ascertained separately, hence not included in above.

(b) Shareholders at their meeting held on 24,h April, 2009 had approved revision in the remuneration of CMD w.e.f 1st April, 2008. Pending approval of the Central Govt., remuneration of CMD is provided based on Schedule XIII of the Companies Act,1956 and additional amount, (in terms of the resolution passed by the shareholders) if any, will be accounted for on receipt of the approval.

(c) In the absence of profit as per section 198 no commission is provided to CMD.

Notes:

@@ Standard Capacity

** Net of captive consumption

. As ceritified by the Management and relied upon by the auditors. begin a technical matter # Production as received in bonded tank farm.

@ Under the Industrial Policy Statement dated 24th July.1991 and the notification issued thereunder, no licensing is required for these products.

*** Including CO2 recieved from Kashipur 354MT (Previous year 967MT) net of transit loss 6,MT (Previous year 5MT )

## Net of Evaporation loss. ** Net of captive consumption.

As certified by the Management and relied upon by the auditors, being a technical matter # Production as received in bonded tank farm.

@ Under the Industrial Policy Statement dated 24th July, 1991 and the notifications issued thereunder, no licensing is required for these products.

*** Including C02 received from Kashipur 354MT (Previous year 967MT) net of transit loss 6MT (Previous year 5MT) ## Net of Evaporation loss.

Notes:

## Includes 712 MT captively consumed in Ethylene Oxide derivatives (Previous year: 784 MT) and 2 MT transferred to

Dehradun Plant (Previous year 12 MT) @@ Includes 2984 MT Captively consumed in Ethylene Oxide derivatives (Previous year 1912 MT)

+Includes 6 MT captively consumed in Ethylene Oxide derivatives (Previous year 8MT) $ Includes 223 MT Stock in Transit/Port (Previous year 60 MT) & Includes 1817 MT Stock in Transit/Port (Previous year 819 MT) A Includes 828 MT Stock in Transit/Port (Previous year NIL MT) AA Includes Nil MT Stock in Transit/Port (Previous year 106 MT )

+Includes 44393639 NM3 captively consumed. (Previous year 43564070 NM3)

# Include 70 MT captively consumed. (Previous year 4 MT)

++ Include 15448360 NM3 Captively consumed. (Previous year 14407931 NM3) and nil NM3 transferred to Dehradun Plant (Previous year 3952 NM3)

$$ Include 16466 KBL transferred to Kashipur Plant for Captive Consumption (Previous year 17245 KBL) and 6128 KBL captively consumed (Previous year 2645 KBL).

*** Includes 5241 MT captively consumed (Previous year 1075 Mt) and 298 MT transferred to Dehradun Plant (Previous year 96) and 360 MT transferred to Gorakhpur plant (Previous Year 972)

$$$ Include 116Kg captively consumed (Previous year NIL)

b) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs 670.02 lacs net off gain Rs. 1223.67 (previous year Rs 6108.01 Lacs) which is inclusive of Rs NIL provision for mark to market loss on account of all outstanding financial transactions as on 31st March 2010.

c) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India Accounting for Derivatives in March, 2008, the Company has provided an amount of Rs 416.67 Lacs included in (b) (Previous year 4743.28) on outstanding contracts to the profit & loss account (read with note no. 12 herein above)

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